Smith, Ricardo, Malthus, say and the rest of the authors of classical political
ID: 1209246 • Letter: S
Question
Smith, Ricardo, Malthus, say and the rest of the authors of classical political Economy are defined by their embrace of the labor theory of value Utilized mathematical models to discuss economic laws recognized the importance of capital accumulation and division of labor were largely unware of previous writing on economics all of the above none of the above In Adam smith's The theory of moral sentiments the invisible hand intercat with sympathy and conscience to create a harmonious society from self interested action determines the market clearing intersection of supply and demand ensure an equitable distribution of wealth across society all of the above True or False: All of the economic theories of wealth and value we studied this semester are squarerooted in either personal utility or human labor. Why do you say so? (Justify your answer) True or False: The Marginalist authors were focused on the total cost of production. Why do you say so? (Justify y our answer)Explanation / Answer
(4) Ans (f)
Classical authors of Political Economy are more concerned with the ‘Value theory and price theory’ rather than labour theory of values. Thus option (a) is incorrect
Classical authors are more concern with logical reasoning rather mathematical models. Thus option (b) is incorrect.
They give importance to division of labour that increases labour productivity. But they did not give much importance to capital accumulation. Thus, statement (c) is incorrect.
(5) Ans (a)
Smith believed that everybody wants to be praised. Thus for persons own interest and to avoid blame on himself, his action (i.e. person’s action) guide him for the sense of morality. This morality derives the capacity to sympathize directly or indirectly with other people.
(6) The statement is true that all the economic theories of wealth and values are studied under the light of personal utility or human labour.
According to Economic theories human actions are guided by his utility for something. His personal utility forces him to do action.
(7) The statement is false that marginalist were focused on the total cost of production.
They are more concerned with margin i.e. additional unit. They are focused on the topics related to decision making in market participation.
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.