History and Key Ideas of Economics

Vocabulary flashcards covering key economists, theories, and historical periods from the lecture on the history and main ideas of economics.

Neolithic Era

Historical period when humans shifted from nomadic life to settled farming, improving living standards and valuing land.

Agricultural Revolution

Discovery and development of farming that enabled sedentary communities and surplus production.

Classical Period (Ancient Greece)

Era emphasizing land stewardship and early economic thought from philosophers like Plato and Aristotle.

Plato’s Communal Property

Idea in 'The Republic' that citizens should not own private property; resources held in common.

Aristotle’s Private Property

Belief that allowing individuals to own property is natural and beneficial to society.

Xenophon’s Division of Labor

Concept that specialization speeds up and eases agricultural work, boosting output.

Feudalism

Medieval system where social ties and obligations were based on land ownership and service.

Middle Ages

Period when the Church wielded power and economic thought centered on moral issues and land.

Mercantilism

Economic system focused on accumulating precious metals through trade surpluses.

Niccolò Machiavelli’s Wealth Policy

View that the state should amass wealth, fueling exploration and conquest.

Antonio Serra’s Trade-for-Gold

Argument that foreign trade can increase a nation’s gold reserves and prosperity.

Thomas Mun’s Balance of Trade

Mercantilist idea that exports must exceed imports to enrich the nation.

Physiocracy

18th-century school claiming land is the main source of wealth and advocating minimal government interference.

Francois Quesnay

Leader of Physiocrats who created the 1758 'Tableau Économique,' an early circular-flow model.

Tableau Économique

Quesnay’s chart illustrating the circular flow of income within an economy.

Adam Smith

‘Father of Modern Economics’; author of 'The Wealth of Nations' and proponent of the Invisible Hand and laissez-faire.

Invisible Hand

Smith’s metaphor that individual self-interest in markets leads unintentionally to social benefits.

Laissez-faire

'Let alone' doctrine advocating minimal government intervention in economic activities.

Malthusian Theory

Thomas Malthus’s claim that population grows faster than food supply, causing famine unless checked by war, disease, or disaster.

David Ricardo

Classical economist known for the Law of Diminishing Returns and Comparative Advantage.

Law of Diminishing Returns

Principle that adding more of one production factor eventually yields smaller output increases.

Law of Comparative Advantage

Ricardo’s idea that nations gain by specializing in goods they can produce relatively more efficiently.

Karl Marx

‘Father of Communism’; co-author of 'The Communist Manifesto' and author of 'Das Kapital'.

Classless Society

Marxist goal where the state owns production factors and wealth is distributed to eliminate social classes.

Jean Charles Sismondi

Economist who agreed with Marx that wealth should enhance human welfare rather than material riches alone.

Alfred Marshall

Author of 'Principles of Economics'; introduced elasticity and highlighted geography’s role in industry.

Elasticity

Marshall’s measure of how much quantity demanded or supplied responds to price changes.

John Maynard Keynes

‘Father of Macroeconomics’; wrote 'The General Theory of Employment, Interest and Money' emphasizing aggregate demand.

Government Intervention (Keynesian)

Keynes’s view that active fiscal and monetary policies stabilize income, employment, and prices.

Macroeconomics

Branch of economics studying aggregate indicators such as income, employment, and government spending.