Economics as a science

Economics

Examine human behavior and practices

Economic goods

things you pay for

Adam smith

father of modern economics

Laissez Faire or Let alone policy

Government should not interfere with the free market

David ricardo

had ideas about the effect of natural resources, wrote law of diminishing marginal returns and Law of comparative advantage

Law of diminishing marginal returns

he increasing number of people will drive a man to cultivate even idle lands to support his necessities in life. This will happen due to the depletion of fertile lands

Law of Comparative Advantage

Country benefits more in producing the products with less production cost than any country. 

Thomas Robert Malthus

discussed the effects of a rapid increase in population and wrote Malthusian theory

Malthusian theory

if the population increases more rapidly than the supply of food, it can cause famine and will affect the economic activities of man.

John Maynard Keynes

Father of macroeconomics and modern theory of employment, wrote Law of supply and demand

Law of supply and demand

the underlying principle of the neoclassicists. government plays a significant role in maintaining equilibrium in the economy through public spending and keeping the balance among demand, supply, and market prices.

“General Theory of Employment, Interest, and Money”

lessons in both local and world economies, and how economic events form our world today.

Karl Marx

Father of communism

Positive economics

what is?

Normative economics

what ought to be?

Monopoly

only one seller, do what they want

Specialization

concentrating work according to skill

Neoclassisists

support lassiezx faire