Introduction
1. Why does the book choose to begin the study of the evolution of economic thought around the year 1500?
2. What factors were important in the transition from feudalism to capitalism? Discuss each factor.
Mercantilism
1. Discuss the main features and policies associated with mercantilism.
2. Why did the mercantilists focus on exchange as the source of wealth? What was the role of the government under mercantilism?
3. Why did mercantilists try to achieve full employment?
4. What was Thomas Mun's major contribution to mercantilist ideas?
5. Discuss the ideas and contributions of Jean Babtiste Colbert.
6. Discuss the ideas and contributions of Sir William Petty.
Physiocrats
1. Who were the Physiocrats? What policies did they advocate, and what problems did their policies address?
2. Discuss the ideas and contributions of Francois Quesnay. Explain Quesnay's Tableau Economique. Why is the table important in the history of economic thought?
3. Discuss the ideas and contributions of Anne Robert Turgot. Why was Turgot dismissed from his duties as finance minister in 1776?
Capitalist Precursors
1. Discuss the ideas and contributions of Richard Cantillon
2. Discuss the ideas and contributions of David Hume.
3. What is the price-specie flow mechanism and why is it important? How do the ideas of Cantillon and Hume differ on this topic?
4. What is the essence of the classical school?
Adam Smith
1. What is the main message of Adam Smith's book The Theory of Moral Sentiments?
2. According to Adam Smith, what are the four stages of economic and social development? What are the characteristics of each stage?
3. What is the role of the state according to Adam Smith? What makes for good taxes?
4. What reasons did Adam Smith give for increases in productivity brought about by the division of labor? What is the most fundamental division of labor? How does productive labor differ from unproductive labor, and why did he make this distinction? Ultimately, what is responsible for the wealth of nations?
5. Why does Adam Smith believe in free international trade? Are tariffs ever acceptable?
6. According to Adam Smith, what is the difference between the market price and the natural price? Why is this distinction important?
7. Why did Adam Smith adopt an "adding up" theory of value for economies that had advanced past the primitive stage?
8. According to Smith, why do wages differ across occupations? What was he trying to explain by making this distinction?
9. What is the wages fund doctrine?
10. What did Smith think would happen to the rate of profit over time? What reasons did he give for his conclusion?
Robert Malthus
1. Explain Malthus' population theory. What policy implications did Malthus draw from this analysis?
2. Explain Malthus's theory of gluts. What policy conclusions did he draw from the analysis?
David Ricardo
1. Explain Ricardo's theory of rent and the law of diminishing returns. What policy conclusions did he draw from this analysis?
2. Explain Ricardo's theory of comparative advantage.
3. Why did Ricardo focus on distribution rather than production?
4. Explain Ricardo's theory of distribution. Also explain why Ricardo believed that rent and profit are inversely related, and that that profit and wages are inversely related. That is, explain and show graphically that, as population grows and the demand for corn rises, rents and wages go up, while profit falls.
5. Why does Ricardo believe the economy will end up in a stationary (no growth) long-run steady state?
Jeremy Bentham
1. How does hedonism differ from utilitarianism?
2. How did Bentham's utilitarianism lead him to egalitarian reform proposals? Why didn't he advocate complete equality of income?
J.B. Say
1. According to J.B. Say, what was the fourth factor of production? How did the addition of this fourth factor of production this remove potential sources of class conflict from classical theory?
2. What is Say's law? What are the implications of Say's law?
Having these review questions will be a big help for me for the approaching exam.
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