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Chapter 1
Lesson 1: Ancient Economic Thought
Pato – “Specialization has 2 effects”
* It increases output and improves welfare of the individual in society by producing more goods and services, secondit is a component of justice. * Interpersonal relationship is necessary and justice exist when group does things that are in their nature. Xenophone – student of Socrates

* Division of labor and the allocation of resources whithing the Latifunda as a way to self-sufficiency. “Oeconomicus” Aristotle – Oikomo,ils dealt w/ the production and consumption of goods Chrematistiks dealt w/ activities of money-making as well as some aspects of production. Mercatilism – economic theory that holds properity of a nation depends upon its supply of capital and the global volume of trade is unchangeable. * Suggests that the ruling government should advance these playing a protectionist tole in the eco, by incouraging exports and discouraging imports. * Its success led to the discovery of “Quantity Theory of Money” and inflation. Physiocrats – group of economists who believed that the wealth of the nations was derived solely from the value pf land agriculture of land dev. * Anne Robert Jacques Turgot and Francois Quesnay

The Laissez-gaire Theory – French fo let do
* George Whatley (Principles of Trade) co-authored by Benjamin Franklin * Doctrine that maintains that private initiative and production are best allowed in roam free, opposing economic intervention and taxation by the state beyond that which is perceived to be necessary to maintain indi.liberty, security, and property rights.

Lesson 2 The Indutrial Revolution and Classical Eco
Adam Smith – founder of Classical School
* Developed an analysis of moral system, “the Theory of Moral Sentiment” and on eco “Wealth of the Nations” * WOTN says labor was paramount and a division in labor would affect a great inc in prod. David Ricardo – The Theory of comparative...
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