ECON 2K03 Study Guide - Midterm Guide: Expulsion Of The Acadians, Stadacona, Upstate New York
19 Oct 2016
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Document Summary
Purpose of studying economic history is to gain knowledge about the past which gives us clues for the future. Economic theory: explains the working of a simplified representation of the real world, and conclusions are then applied to the real world: theory helps us understand history. Economic history: the study of economic growth and development. Economic growth: an increase in the overall productive capacity of an economy. Economic development: a change in the structure of production and the corresponding composition of output. Classical theory: smith, ricardo, malthus, mill 19th century, diminishing mp, falling ap, this is how econ is aka dismal science. Marxian analysis: labour theory of value: value of a commodity stems solely from the socially necessary labour time invested in it, immiseration of the proletariat: workers become isolated from commodities, revolution ends capitalism. Keynes: post wwii, emphasized the importance of real rates of capital formation, investment and full employment keys to economic growth.
