Economic Philosophers and Systems (copy)

John Maynard Keynes

Recognized as the Father of Macroeconomics and introduced Fiscal and Monetary Policy during the Great Depression of 1930.

Invisible Hand

A metaphor by Adam Smith describing how individual self-interest in a free market unintentionally benefits society as a whole.

Haves vs the Have Nots

A concept introduced by Karl Marx dividing industrial society into the Bourgeoise (owners of capital) and the Proletariat (working class).

Communism

An economic system requiring government or community ownership of all means of production and wealth, abolishing private property.

Socialism

An economic system based on public ownership of key industries and resources, aiming to replace capitalist ideals with cooperation and solidarity.

Capitalism

An economic system characterized by private ownership of industry and free-market operations aimed at profit.

Traditional Economy

An economic system shaped by traditions and customs, determining what, how, and for whom goods are produced.

Command Economy

An economic system where a central authority controls the production, pricing, and distribution of goods and services.

Market Economy

An economic system guided by supply and demand, where production and pricing decisions are made by consumers and businesses.

Mixed Economy

An economic system that combines private enterprise and free markets with government regulation and public services.

Positive Economics

Analytical economics based on verifiable facts using conditional statements.

Normative Economics

Economics based on opinions and values regarding what ought to be done.

Scarcity

The limited availability of resources or products that are in demand in the market.

Opportunity Cost

The loss of potential gain from other alternatives when one choice is made over others.

Production Possibility Curve (PPC)

A graph showing the maximum potential output of an economy or firm, illustrating the trade-offs of different production choices.

Fallacy of Composition

The assumption that what is true for one person or element is also true for a whole group or system.

Post Hoc Fallacy

The incorrect assumption that because one event follows another, the first event caused the second.

Fallacy of Single Causation

The erroneous belief that a single factor is solely responsible for a complex event.

Circular Flow of the Economy

The continuous movement of money through the relationships between main economic agents, such as households and companies.

Perfect Competition

A market structure where many companies offer standardized products, resulting in price takers.

Monopoly

A market structure dominated by a single seller, with high barriers to entry and unique products.

Monopolistic Competition

A market structure where many firms sell differentiated products, allowing for some price competition.

Oligopoly

A market structure characterized by a few firms that dominate the market, often avoiding price competition.

Sole Proprietorship

A business owned and run by one individual, with no legal distinction between owner and business.

Partnership

A business owned by two or more individuals, sharing management and liabilities.

Corporation

A legal entity owned by shareholders, providing strong personal liability protection.