David ricardo - Study guides, Class notes & Summaries

Adam Smith believed that if people were free to pursue their own interests, a. less would be produced than if altruism were the guiding principle. b. the public interest would be served quite well. c. they would generally apply their talents to unproductive activities that would generate little value to society. d. they would have little incentive to undertake productive activities. ANSWER: b 2. Modern economics as a field of study is usually thought to have begun with a. Adam Smith and t...

Chapter 3 Interdependence and the Gains from Trade TRUE/FALSE 1. In most countries today, many goods and services consumed are imported from abroad, and many goods and services produced are exported to foreign customers. ANS: T NAT: Analytic TOP: Trade DIF: 1 REF: 3-0 LOC: Gains from trade, specialization and trade MSC: Definitional 2. Interdependence among individuals and interdependence among nations are both based on the gains from trade. ANS: T DIF: 2 REF: 3-0 NAT: Analytic LOC: G...

Free trade Correct Answer a situation in which a government does not attempt to influence through quotas or duties what its citizens can buy from another country or what they can produce and sell to another country Comparative advantage Correct Answer the intellectual basis of modern argument for unrestricted free trade David Ricardo Correct Answer comparative advantage Heckscher-Ohlin Theory Correct Answer The theory that a country will export goods that make intensive use of the facto...

Globalization can be viewed as: - CORRECT ANSWER 1. a new force sweeping through the world in recent times. 2. a long-run historical evolution since the dawn of human history. 3. a pendulum that swings from one extreme to another from time to time. Which are the three views of globalization? - CORRECT ANSWER A recent force, a longrunning evolution, and a pendulum An import quota is: - CORRECT ANSWER restriction on the quantity of imports that can be brought into a country. Examples o...

Mercantilism (mid-16th century England) - ANSWER-It is in the best interests of a country to maintain a trade surplus, even if this means government intervention (maximize exports, minimize imports). (Sell more abroad and buy less) Absolute Advantage (Adam Smith 1776) - ANSWER-Countries should specialize in, or focus on, producing and exporting products which they have an absolute advantage in (they are more efficient at producing that product than any other country) Comparative Advantage ...

Summary Economic Challenges. All lectures of Economic Challenges and Glossary.

International Political Economy is correct answers interplay of economics & political affairs. what drives and explains events in the world economy? Who runs the global economy? Who has enough influence to define the rules of the game and give direction (in one way or another) to economic globalization? What is the role of the state in the economy? Traditional Approaches to IPE (3) correct answers Liberalism, realism/mercantilist, and marxist traditions Realism/Mercantilism (na...

free trade a situation in which a government does not attempt to influence through quotas or duties what its citizens can buy from another country or what they can produce and sell to another country comparative advantage the intellectual basis of modern argument for unrestricted free trade David Ricardo comparative advantage Heckscher-Ohlin Theory The theory that a country will export goods that make intensive use of the factors of production in which it is well endowed...

(Adam )Smith -Answer- () Scottish philosopher and economist. Though he wrote on nearly every subject of moral and social philosophy, he is remembered as the author of An Inquiry into the nature and causes of the Wealth of Nations (1776) and as the creator of the metaphor of the "invisible hand." This work more-or-less single-handedly founded the Classical school of economics. (David )Ricardo -Answer- () English economist. Ricardo is best known for Principles of Political Economy and Taxatio...

TEXES Social Studies 232 Latest 2023 Already Passed Montesquieu Three branches of government with checks and balances Voltaire Importance of freedom of speech, religion, press Locke Two Treatises, people have natural rights and right to rebel Full Employment Allows for up to 4% unemployment Money Market Funds High rate of return, safe investment Certificates of Deposit High rate of return, safe, have to invest for set period of time Stocks Risky investment, but highest rate of return Musl...