Question 1

The word economics derives from an early Greek term that means management of a:

Accepted Answer

The word economics comes from the Greek word "oikonomia," which means management of a household or estate, reflecting the origins of economic thought in managing household resources.

Question 2

The cliché that "the punishment should fit the crime" originated in the writings of:

Accepted Answer

Jeremy Bentham, a philosopher and legal theorist, is known for his work in the field of utilitarianism. He argued that the punishment for a crime should be proportionate to the harm caused by the crime, which aligns with the principle that "the punishment should fit the crime."

Question 3

The notion that communism should be imposed on a nation's rulers so that they would neither be tempted by possessions nor diverted from the task of wise governance was proposed by:

Accepted Answer

Plato proposed the idea that communism should be imposed on a nation's rulers in his work "The Republic." He believed that by eliminating private property and family ties among the ruling class, rulers would be free from personal distractions and could focus solely on the welfare of the state.

Question 4

In his description of an idealized city-state, Plato did not advocate:

Accepted Answer

Plato did not advocate for self-regulation of markets; instead, he emphasized a structured society with class specialization and governance by philosopher kings.

Question 5

The ancient Greek philosopher who tried to analyze isolated (one-on-one) exchange because markets with standardized products were relatively rare during his era was:

Accepted Answer

Aristotle is known for his analysis of justice in exchange, focusing on the concept of reciprocity in barter, which was more relevant in his time due to the rarity of standardized markets.

Question 6

Of the following, the thinkers who viewed markets most favorably and who would consequently have been least likely to condemn payments of interest as immoral or unjustified by productivity would have been:

Accepted Answer

Richard Cantillon and François Quesnay were both economists who had positive views on the role of markets in the economy. Cantillon is known for his contributions to the understanding of the market economy and the role of the entrepreneur, while Quesnay, a leading figure of the Physiocrats, believed in the productivity of agricultural markets and advocated for a natural economic order governed by the laws of the market. Both would have been more likely to view payments of interest in a positive light, in contrast to the views held by many thinkers in the past who condemned interest payments as immoral or unjustified.

Question 7

Medieval scholastics, early Islamic thinkers, and Aristotle all agreed that:

Accepted Answer

The prohibition of usury (charging interest on loans) is a concept that was shared among medieval scholastics, early Islamic thinkers, and Aristotle. They all viewed the practice of charging interest on loans as morally wrong or economically harmful.

Question 8

What early philosopher described this type of developmental cycle: people move from a rural, nomadic society with little economic surplus to an agricultural society with greater economic surplus and population growth?:

Accepted Answer

Ibn Khaldun described a developmental cycle in which societies move from a nomadic lifestyle to a more settled agricultural one, leading to increased economic surplus and population growth. This is part of his broader theory on the rise and fall of civilizations.

Question 9

The concept of a "just price" that condemned market forces for yielding unjust results was developed in the writings of:

Accepted Answer

The answer of The concept of a "just price" that...

Question 10

Nationalism, self-sufficiency, and imperial power were central concerns of:

Accepted Answer

Mercantilists focused on building a nation's wealth by increasing exports and accumulating precious metals, which led to policies promoting self-sufficiency, imperial expansion, and national power.

Question 11

Supernatural power, divinity, and gifts of nature are integral to the explanations of economic events developed by:

Accepted Answer

Physiocrats believed that the economy was governed by natural laws, and that government intervention should be limited to protecting property rights and enforcing contracts.

Question 12

The French Physiocrats believed land was the only thing that could produce a net product, this net product was the surplus generated from land. Physiocrats concluded that a reasonable measure of a society's net product is:

Accepted Answer

Physiocrats considered land rent as the most reasonable measure of a society's net product because it directly reflects the surplus generated from the productive use of land, aligning with their belief that land is the sole source of wealth.

Question 13

Management of the economy via extensive regulations and laws specified by the national government is most consistent with:

Accepted Answer

Mercantilism is an economic system that emphasizes government regulation of the economy to promote national wealth and power.

Question 14

The concept of _____ was illustrated by _____ with the quote, "The loss of a little finger would keep the average European from sleeping that night, ... but, provided he never saw them, he will snore with the most profound security over the loss of millions of his brethren."

Accepted Answer

This quote illustrates the concept of self-interest, a fundamental idea in economics often associated with Adam Smith. Smith argued that individuals acting in their own self-interest inadvertently contribute to the economic well-being of society, a principle encapsulated in the metaphor of the "invisible hand." The quote reflects on the human tendency to prioritize personal concerns over the plight of others, a behavior that aligns with Smith's observations on self-interest.

Question 15

The first comprehensive work on economics written in English was authored by Adam Smith in 1776 and entitled "An Inquiry into the Nature and Causes of the:

Accepted Answer

Adam Smith's seminal work, "An Inquiry into the Nature and Causes of the Wealth of Nations," laid the foundations for the study of economics and is considered the first comprehensive work on the subject in English.

Question 16

Adam Smith's theory of economic growth relies upon a ________ to kick-start the process, and then _________ to continue it.

Accepted Answer

Adam Smith's theory of economic growth emphasizes the division of labor as the initial catalyst for economic development, followed by capital accumulation as the means to sustain and further that growth.

Question 17

Social welfare is maximized when a "hedonistic calculus" regulates all human action according to the interventionist "liberal":

Accepted Answer

Jeremy Bentham is associated with the concept of "hedonistic calculus," which is a part of his utilitarian philosophy. This philosophy suggests that actions should be judged as morally right or wrong based on their consequences, specifically the extent to which they promote happiness or pleasure and minimize pain. Bentham's approach is foundational to utilitarianism, which aims at maximizing social welfare by focusing on the greatest happiness for the greatest number.

Question 18

The theory that in equilibrium, workers' wages will barely be adequate for biological needs is known as the:

Accepted Answer

The subsistence theory of wages, often associated with classical economists like David Ricardo and Thomas Malthus, posits that wages in the long run tend to adjust to a level sufficient only for the workers' minimum subsistence (basic needs for survival). This theory suggests that in equilibrium, wages will not sustain much more than the biological needs of workers.

Question 19

According to Karl Marx, the properties that distinguish commodities do not include:

Accepted Answer

Marx argued that commodities are defined by being useful, produced by human labor, and offered for sale in the market. The property of being inseparable from the individual that produced them is not a characteristic of commodities according to Marx; instead, he emphasized the detachment of the commodity from its producer once it enters the market.

Question 20

The Marxist concept of surplus value would not include income received in the form of:

Accepted Answer

Surplus value, according to Marxist theory, is the value generated by workers in excess of their wages. Wages are considered the cost of labor power, which the capitalist pays to the worker; thus, they do not constitute surplus value. Surplus value is instead realized through forms of income like rent, interest, and profits, which are derived from the exploitation of labor.

Quiz 1: History and Philosophy of Economics Economic Theory and Thinkers