question

the Scottish philosopher who is known today as both the "father of modern economics" and the "founder of capitalism"

answer

Adam Smith

question

the first thinker to ouline in detail the characteristics and benefits of a complete economic system - the free-market economy

answer

Adam Smith

question

the author of "An Inquiry into the Nature and Causes of the Wealth of Nations" or "The Wealth of Nations"

answer

Adam Smith

question

the book that is recognized as the foundation of modern economic theory

answer

The Wealth of Nations

question

Adam Smith's first book which made him famous throughout Great Britain

answer

The Theory of Moral Sentiments

question

a believer in the 18th-century philosophy that argued that laws created by humans are artificial and unnecessary because they interfere with natural laws, such as an individual's pursuit of self-interest, which would ultimately benefit all of society

answer

physiocrat

question

a French term meaning "leave to do" or "let alone", which became associated with the idea that an economy operates best if individuals are allowed to pursue their own self-interest without government interference

answer

laissez-faire

question

Adam Smith was greatly influenced by this American politician and writer, who provided much information about the economic situation in the American colonies

answer

Benjamin Franklin

question

Adam Smith was born into a world where ____________ was the prevailing economic system

answer

mercantilism

question

an economic system that emphasized state control of trade, with the goal of exporting as many goods as possible and importing as few foreign goods as possible

answer

mercantilism

question

a policy of limiting imports through tariffs

answer

protectionist

question

in order to make mercantilism work, a country's government had to adopt a ________ policy

answer

protectionist

question

a tax on an import levied by a nation; also called custom duty

answer

tariff

question

another name for tariff

answer

custom duty

question

it provided a strong argument for replacing state control of the economy with a reliance on natural laws to regulate economic activity

answer

laissez-faire philosophy

question

Smith learned from Benjamin Franklin that the growing mood of rebellion in the American colonies was a direct reaction to interference by the British goverment, through various ____________, in the economic life of the colonists

answer

taxes and regulations

question

the idea of laissez-faire philosophy contributed to this historical event

answer

French Revolution

question

the interference of the British government led to this historical event in 1776

answer

Declaration of Independence

question

interference of the British government led to this historical period

answer

American Revolution

question

it broke up the large plots of land that towns had held in common since the Middle Ages and redistributed them in small plots to individual landholders

answer

Enclosure Movement

question

the period of technological innovation and factory production, beginning in Britain in the late 18th century, that eventually changed the economy from one that was largely agricultural and rural to one that was industrial and urban

answer

Industrial Revolution

question

Adam Smith believed that human beings are motivated primarily by ____________

answer

self-interest

question

this motive provides the major stimulus for economic growth and prosperity

answer

profit

question

it controls the economy as an invisible hand or a natural control

answer

competition

question

the specialization of workers in a complex production process, leading to greater efficiency

answer

division of labour

question

Adam Smith's theory that businesspeople who invest a percentage of their profits in new capital equipment increase the economy's stock of capital goods, thus ensuring economic growth and future prosperity

answer

law of accumulation

question

Adam Smith's theory that the accumulation of capital by businesspeople requires more workers to operate the equipment, leading to higher wages, which in turn lead to better living conditions, lower mortality rates, and an increase in population

answer

law of population

question

recognized historically as the first professional economist

answer

Thomas Robert Malthus

question

he challenged Adam Smith's view of a world governed by natural laws that provided ever-increasing prosperity, and he predicted inevitable poverty and famine for the masses

answer

Thomas Robert Malthus

question

the author of "An Essay on the Principle of Population As It Affects the Future Improvement of Society"

answer

Thomas Robert Malthus

question

after reading Malthus, the English writer Thomas Carlyle referred to economics as _______________

answer

the dismal science

question

the term which Malthus used to designate an acadamic office which made him rightly be identified as the first professional economist

answer

political economy

question

one of the seven economists who lived in a time which rapid population growth and mass migration to cities and jobs in mechanized factories result in overcrowding

answer

Thomas Robert Malthus

question

the growth pattern of population

answer

geometrical progression

question

the growth pattern of food production

answer

arithmetical progression

question

a balanced economic system (in which one unit of food is available for each unit of population) will naturally transform itself, if left unchecked, into an economically unbalanced situation

answer

Malthusian dilemma

question

the economicst who argued that the population, if left unchecked, would double every 25 years

answer

Thomas Robert Malthus

question

the economist who increased support for laissez-faire capitalism

answer

Adam Smith

question

the economist who increased prosperity for industrialist class

answer

Adam Smith

question

the economist who increased the value of population studies and statistical analysis

answer

Thomas Robert Malthus

question

the economist who believed that wages and the standard of living should hover around the subsistence level in order to keep the population from growing out of control

answer

Thomas Robert Malthus

question

Thomas Malthus's theory that war, famine, and disease would check population increases to some extent, but not enough to prevent the geometric progression of the world's population to unsustainable levels

answer

positive check

question

Thomas Malthus's theory that restraints such as late marriage and sexual abstinence would help reduce the birth rate to some extent, but not enough to prevent the geometric progression of the world's population to unsustainable levels

answer

preventive check

question

the period in the 20th century, which had a series of technological breakthroughs in the field of agriculture

answer

Green Revolution

question

the economist who was born during industrial revolution, when population grows rapidly, poor crop yields and Napoleonic War drain food reserves, and power of industrialist class grows with economy

answer

David Ricardo

question

the author of the Principles of Political Economy and Taxation

answer

David Ricardo

question

the book written by David Richardo which exposes the bitter class conflicts at the heart of any society structured around free-enterprise capitalism

answer

the Principles of Political Economy and Taxation

question

this book challenged the power of the aristocratic landlord class by questioning the contributions of this class to society

answer

the Principles of Political Economy and Taxation

question

the group of people who lived on modest wages as David Ricardo defined

answer

working class

question

the group of people who made healthy profits by operating the factories they owned, as David Ricardo defined

answer

industrialist class

question

the group of people who received substantial rent from the land titles they held

answer

aristocratic landlord class

question

the economist who argued that one class in an economy could prosper only at the expense of the others

answer

David Ricardo

question

Early 19th-century taxes on grains imported into Britain that drove up the market price of domestic grain in order to benefit the landlord class; these taxes became a focus of opposition for David Ricardo's wage and free trade theories

answer

Corn Laws

question

labour's wages remain naturally near subsistence level as improvements bring population increases

answer

iron law of wages

question

the capacity of one economy to produce a good or service with fewer resources than another

answer

absolute advantage

question

the capacity of one economy to produce a good or service with comparatively fewer resources than another (e.g. having a lower opportunity cost)

answer

comparative advantage

question

the economist who believed strongly in free trade as a result of his belief in comparative advantage

answer

David Ricardo

question

According to this economist, economics must come before politics, science, art, and religion in importance because it determines the course of human history

answer

Karl Marx

question

term used by Karl Marx for industrial capitalists who, he theorized, would be overthrown by the working class

answer

bourgeoisie

question

term used by Karl Marx to describe the working class who, he theorized, would rise up and overthrow the bourgeoisie, or industrial capitalists

answer

proletariat

question

Karl Marx's most comprehensive work

answer

Capital

question

the economist who believed capitalism, as an economic system, was so morally bankrupt that it would one day destroy itself

answer

Karl Marx

question

Karl Marx's notion that the value of any item is equal to the value of the labour used to produce it

answer

labour value

question

the difference between the value of a good measured in terms of the labour used to produce it, and its higher selling price, a surplus that Karl Marx believed was stolen from labour by capitalists

answer

surplus value

question

according to Karl Marx, class conflict leads to _________, which leads to rebellion

answer

exploitation

question

the economist who exposed the evils of capitalism

answer

Karl Marx

question

the movement which promotes overthrow of corrupt ruling class, resulting in violent rebellions and Russian Revolution of 1917

answer

international communism

question

the economist who was born in WWI followed by the Great Depression and WWII

answer

John Maynard Keynes

question

the author of the Great Theory of Employment, Interest, and Money

answer

John Maynard Keynes

question

this economist's book helped to rescue the capitalist system from self-destruction and the spectre of international communism

answer

John Maynard Keynes

question

another name for fiscal policy

answer

Keynesian economics

question

the economist who strongly criticized the Treaty of Versailles

answer

John Maynard Keynes

question

a key economic adviser to the British government during WWII

answer

John Maynard Keynes

question

the economist who recommended "deferred savings"

answer

John Maynard Keynes

question

a portion of every worker's pay would be automatically invested in government war bonds that could not be cashed until after the war

answer

deferred savings

question

deferred savings to finance war effort

answer

war bonds

question

the economist who believed that sustainable peace requires fair treatment of enemies

answer

John Maynard Keynes

question

the economist who hypothesized that, during the war, consumer spending would interfere with the war effort; after the war, consumer buying power would help to stimulate investment, permit increased production of consumer goods, and maintain employment levels

answer

John Maynard Keynes

question

the economist who believed that government intervention is needed to stimulate employment, spending, and economic growth during slowdown phase of business cycle (recession/depression)

answer

John Maynard Keynes

question

the economist who contributed to the rebuilding plan for Europe which lead to economic ties and peaceful relations

answer

John Maynard Keynes

question

the economist who emphasized increased goverment spending and reduced taxes

answer

John Maynard Keynes

question

To this economist, the Great Depression was ultimately a problem of too little investment

answer

John Maynard Keynes

question

the only Canadian economist out of the seven metioned in this chapter

answer

John Kenneth Galbraith

question

one of Canada's most notable exports to the United States

answer

John Kenneth Galbraith

question

author of The Affluent Society

answer

John Kenneth Galbraith

question

the economist who argued that the post-war emphasis on private-sector production resulted in private affluence and public squalor

answer

John Kenneth Galbraith

question

the economist who believed that, in the world of large international corporations, executive managers hold real decision-making power

answer

John Kenneth Galbraith

question

the year John Kenneth Galbraith died

answer

2005

question

the economist who believed that more government involvement and regulation of the economy would help improve society

answer

John Kenneth Galbraith

question

the economist who is regarded as a leading proponent of the liberal economic perspective; also acknowledged as the most articulate champion of the conservative view

answer

Milton Friedman

question

the author of Capitalism and Freedom

answer

Milton Friedman

question

the author of A Monetary History of the United States

answer

Milton Friedman

question

the economist who was strongly influenced by the amount of unproductive government intervention in the US economy following the end of WWII

answer

Milton Friedman

question

the economist who believed that government attempts to induce cycles of economic growth and rull employment (by increasing spending and reducing taxes) resulted in periods of significant inflation and a steady increase in the rate of public debt

answer

Milton Friedman

question

spending priorities of goverment are changed to improve _________ _________

answer

social balance

question

the year when Milton Friedman died

answer

2006

question

the period when fiscal policy (Keynesian economics) is emphasized

answer

1945-1990

question

according to this economist, free markets will largely resolve their own economic problems more effectively if they are left alone rather than subjected to government intervention

answer

Milton Friedman

question

the economist who believed that the most effective way for government to influence economic growth and stability is through regulating money supply and interest rates

answer

Milton Friedman

question

a system Milton Friedman recommended for public education

answer

voucher system

question

someone who believes that the most effective way for government to influence economic growth and stability is through regulating money supply and interest rates

answer

monetarist

question

the period when monetary policy is emphasized

answer

1990-present

Economics Chapter 3 Terms – The Evolution of Economic Thought – Flashcards

Unlock all answers in this set

Haven't found what you were looking for?

Search for samples, answers to your questions and flashcards