Econ434truefalseA - HistoryofEconomicThought...

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History of Economic Thought Classical Theory 1. HET \ F \\History \2\ Adam Smith perceived the "invisible hand" of the market system as serving the interests of profit seekers to the detriment of the consuming public. 2. HET\ T \\Biography\2\\ Adam Smith believed that market solutions tend to be more efficient than government regulations. 3. HET\ F \\Government\2\\ Adam Smith emphasized the invisible hand of government policy as the proper cure for market system deficiencies. 4. HET \\ F \\ Taxation \\ 2 \ Adam Smith argued that taxes should be certain and highly regressive. 5. HET \ F \\ Gains from Exchange \\ 2 \ The first formulation of the principle of absolute advantage is attributed to David Ricardo. 6. HET \ T \\ International Trade \ 2 \\ David Ricardo is best remembered as a trade theorist for formulating the Principle of Comparative Advantage . 7. HET \ T \\ Gains from Exchange \ 2 \\ David Ricardo’s law of comparative advantage asserts that net gains from trade will be realized whenever the relative pre-trade production costs of various goods differ between countries. 8. HET \ T \\ Biography \ 2 \\ The utilitarian philosophy was formalized by an eccentric English lawyer named Jeremy Bentham. 9. HET \ T \\ Biography \ 1 \\ Thomas Malthus believed that, if left unchecked, population increases at a geometric rate while food increases at an arithmetic rate. © 2004 Ralph T. Byrns History of Economic Thought 1
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10. HET \ F \\ Biography \ 2 \\ Thomas Malthus classified several preventive checks on population growth rates, including war, pestilence, and famine. 11. HET \\ T \\ History \\ 2 \ The economic concept of a subsistence wage is based on assumptions similar to those serving as foundations for the biological S -curve used to illustrate Malthusian population theory. 12. HET \\ T \\ Biography \\ 1 \ One major criticism of the Malthusian theory of population is that Thomas Malthus did not account for technological change. Neoclassical Economics 13. HET \ T \\ Biography \ 1 \\ Among the most notable achievements of Antoine Augustin Cournot was his development of MR=MC , the profit maximization rule. 14. HET \ T \\ Biography \ 1 \\ Vilfredo Pareto developed a theory of economic welfare that is still important today. 15. HET \\ F \\ Biography \\ 1 \ The origin of partial equilibrium analysis is generally attributed to Leon Walras. 16. HET \ T \\ Biography \ 1 \\ Among Alfred Marshall's most significant contributions to economic theory was his use of “ Ceteris paribus ” to simplify the problem of dealing with continuous change. 17. T13 \ T \\ Income Distribution \ 2 \\ According to John Bates Clark, there will be no pure economic profits in a purely competitive economy if all resources are paid the values of their marginal products. All income from production will be absorbed by resource payments. Austrian Economics
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Econ434truefalseA - HistoryofEconomicThought...

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