Q1: Lesson 1 | Economic Theories Flashcards
Refers to just wage and price
Compensatory justice
Refers to fair distribution of goods among the members of society
Distributive justice
He preached distributive and compensatory justice, he condemned usury and other unfair practices of capitalism
St. Thomas Aquinas
He provided ways of achieving favorable foreign trade and explained about the exports and imports of goods and services. His writings dominated the whole concept of mercantilism in Europe
Thomas Mun
It means RULE OF NATURE. The first modern school of thinkers to call themselves economist emerged. It stressed the importance of agriculture because they claimed that all wealth came from land
Physiocracy
Was noted leader of the physiocrats
Francois Quesnay
Theory where the government should not intervene in economic affairs
Laissez Faire Theory
He believed in the merits of free competition concept and free market. According to him, the only source of wealth is production through labor and resources. In 1776, his famous book “Nature and Causes of the Wealth of Nations” was published
Adam Smith
He said that the rate of population growth is higher than the rate of food production. This result to scarcity of food
Thomas Maltus
According to him, you must not produce the product if it is cheaper to buy. He equated the value of a product with the cost of labor that went into its production
David Ricardo
He argued that the only source of a firm’s profit is the labor it employs. Das Kapital and Communist Manifesto.
Karl Marx
Capitalists who own the means of production
Bourgeoisie
Working class or people who sell their labour power to the capitalists
Proletariat
It would create a classless society and therefore, it would be the final and permanent state of society
Communism
