Econ434MC2 - Topic 2 Economic Theory Prior to Adam Smith 1...

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Topic 2: Economic Theory Prior to Adam Smith 1. The earliest writer now known to have notably discussed [1] the lengths to which people will go to profit, [2] how profit-seeking makes goods available, [3] prices as increasing because of shortages, and decreasing because of surpluses, and [4] a role for government in regulating market prices, was: (a) Guan Zhong [725-645 BC], a Chinese administrative theorist. (b) Albertus Magnus [1206-1280], a medieval scholastic. (c) Richard Cantillon [1680-1734], an Irish entrepreneur. (d) Francois Quesnay [1694-1774], a French physician. (e) Adam Smith [1723-1790], a Scottish moral philosopher. 2. The robust market for illegal drugs in the United States may exist because of its profitability, according to reasoning expressed by the early Chinese philosopher: (a) Guan Zhong. (b) Lao Tzu. (c) Confucius. (d) Ming Tao. (e) Omar Khayyam. 3. The Chinese writer Guan Zhong used his “light/heavy” theory to describe an early version of: (a) the law of comparative advantage. (b) the laws of supply and demand. (c) John Locke’s labor theory of value. (d) Malthusian theory of population growth. 4. It is untrue that the Greek philosopher Protagoras (c. 480-411 BC) believed: (a) in common sense as an appropriate guide for decisions moreso than in rational and “objective” science. (b) human beings incapable of comprehending any absolute truth. (c) viewed “facts” as subjectively observed and never truly verifiable. (d) human beings to be “the measure of all things.” (e) the Socratic method and Aristotelian logic to be excellent tools to help improve people’s understanding of the world. 5. Protagoras, an early Greek philosopher: (a) asserted that man is the measure of all things. (b) studied economics on the macro level. (c) argued that divisions of labor often decrease productivity. (d) viewed international trade as a zero-sum game. 6. The word economics derives from an early Greek term that means management of a: (a) business. (b) government. (c) household. (d) financial institution. (e) industry. 7. Xenophon was roughly contemporary with Plato and Aristotle. The title of his book, in Greek, refers to efficiency at the level of the household and producer, and it is: (a) Economics for Dummies . (b) Wealth of Nations . (c) Oeconomicus . (d) The Republic . (e) Summa Logica . 8. According to Xenophon [444 BC-?], a good manager strives to increase the size of the economic surplus of the unit he supervises. Xenophon asserted that economic surpluses depend primarily on: (a) the manager’s personal skill and labor, and divisions of labor in accomplishing tasks. (b) the techniques the manager uses to motivate each employee. (c) Adam Smith’s wage theory. (d) Say’s law in accordance with Ricardian theory of value. 9.
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This note was uploaded on 01/12/2010 for the course ECON 434 taught by Professor Byrns during the Spring '09 term at UNC.

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Econ434MC2 - Topic 2 Economic Theory Prior to Adam Smith 1...

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