week 6 : concluding thoughts (Trends ( Economic imperialism, Increasing…
week 6 : concluding thoughts
History of economic thought
Development of economics as profession
Economics was regarded an investigation of
the laws which regulate the distribution of the produce of the earth (Ricardo)
laws of motion of capitalism (Marx)
the nature and causes of the wealth of nations (Smith)
human behavior as a relationship between given ends and scarce means which have alternative uses (since Marginalists)
: Theories of imperfect competition
: Competitive equilibrium analysis
Main issues remained since Adam Smith
What determines prices?
What causes economic growth?
What factors determine the income distribution?
Broadening and deepening of perspective!
Greater role for empirical research
Economics becomes profession
Globalization of economics
Economic ideas and economic tools are now extended to new areas, which – according to Marshall – would not be part of traditional economics.
At the same time, ideas from other sciences have been adopted and tested in economics.
Marshall: Economics is the study of men “in the ordinary business of life”.