The priority method for studying the classical school of political economy is. The main stages of classical political economy
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Introduction
1. General characteristics of classical political economy
2. The main representatives of classical political economy
2.1 "Political arithmetic" by William. Petty
2.4 Treatise on the Political Economy of Jean Baptiste Say
Conclusion
List of references
classic Political Economy Petty Smith
Introduction
The theme of my test seems to be not relevant today. Some economists consider it unnecessary to turn to the theories and views of the past, because these theories and views are “overgrown with shells” and have lost their significance, and therefore you should not waste time getting to know them.
Those who hold such a purely negative opinion are relatively few. The vast majority of specialists do not share it.
The purpose of my work is to characterize one of the directions in the history of economic studies, namely, classical political economy: general features characterizing this direction, its most famous representatives and their contribution to economic science.
The processes taking place in the economy, the "classics" presented in a single, most enriched form as a sphere of interrelated laws and categories, as a logically coherent system of relations.
The classical school laid a solid foundation for economic theory, paving the way for further improvement, deepening and development.
Studying the evolution of economic concepts, we strive to understand how the process of the formation and enrichment of our knowledge of the economy, how and why many ideas of the past still remain relevant, how they affect our modern ideas, unfold.
1. General characteristic of classical political economy
1.1 the Definition of classical political economy
The classical school of political economy is one of the mature areas of economic thought that left a deep mark in the history of economic doctrines. The economic ideas of the classical school have not lost their significance to this day. The classical trend originated in the 17th century and flourished in the 18th and early 19th centuries. The greatest merit of the classics is that they put labor at the center of economics and economic research as a creative force and value as the embodiment of value, thus laying the foundation for the labor theory of value. The classical school has become a forerunner of the ideas of economic freedom, a liberal trend in the economy. Representatives of the classical school developed a scientific understanding of surplus value, profit, land rent taxes. In the bowels of the classical school, in fact, economic science was born.
Classical political economy arose when entrepreneurial activity following the sphere of trade, monetary circulation and loan operations also extended to many industries and the production sector as a whole. Therefore, already in the manufacturing period, which highlighted the capital employed in the production sector, the protectionism of mercantilists lost their dominant position to a new concept - the concept of economic liberalism based on the principles of state non-interference in economic processes and unlimited freedom of competition for entrepreneurs.
For the first time, the term “classical political economy” was used by K. Marx, one of its finalists, in order to show its specific place in “bourgeois political economy”. And the specificity, according to Marx, consists in the fact that from W. Petty to D. Ricardo in England and from P. Boisguillebert to S. Sismondi in France, classical political economy “investigated the actual production relations of bourgeois society”.
As a result of the decomposition of mercantilism and the strengthening of the growing tendency to limit direct state control over economic activity, “pre-industrial conditions” lost their former significance and “free private enterprise” prevailed. The latter, according to P. Samuelson, led “to the conditions of complete laissez faire (that is, absolute non-interference of the state in business life), events began to take a different turn,” and only “... from the end of the 19th century. in almost all countries there has been a steady expansion of the economic functions of the state. ”
In fact, the principle of “full laissez faire” became the main motto of a new direction of economic thought - classical political economy, and its representatives debunked mercantilism and the protectionist policies advocated by him in the economy, putting forward an alternative concept of economic liberalism.
In modern foreign economic literature, paying tribute to the achievements of classical political economy, they do not idealize them. At the same time, in the system of economic education in most countries of the world, the separation of the “classical school” as an appropriate section of the history of economic studies is carried out primarily from the point of view of the common characteristics and features inherent in the works of its authors:
Emphasis on the analysis of problems of production and distribution of material goods;
Development and application of progressive research methodological methods;
Nucleus economic analysis classics - the problem of value;
All classics interpreted value as a quantity determined by production costs;
Perception of the economic system as a system similar to the objects of study of the physics of that time (or rather, mechanics). This, in turn, led to the following features of the economic analysis of the classical school: the conviction that universal and objective (economic) laws dominate the market (capitalist) economy; and ignoring the subjective psychological factors of economic life.
Underestimation of the role of money and the influence of the sphere of circulation on the sphere of production.
Classics regarded money as a technical tool to help facilitate exchange. Classics ignored the role of money as the most liquid means of preserving value. The finisher of classical political economy, J. S. Mill, wrote: “In short, it is hardly possible to find a thing in the social economy that is more insignificant in importance than money, if you do not touch upon the way in which time and labor are saved”;
Great emphasis on the study of "laws of motion", i.e. patterns of trends, dynamics, capitalist economies.
Negative attitude (with rare exceptions such as J.S. Mill) to active government intervention in the economy. Classics after the physiocrats advocated the ideology of laissez-faire.
1.2 Stages of development of classical political economy
According to generally accepted estimates, classical political economy originated in the late XVII - early XVIII centuries. in the works of W. Petty (England) and P. Boisguillebert (France). Its completion time is considered from two theoretical and methodological positions. One of them, Marxist, points to the period of the first quarter of the 19th century, and the English scholars A. Smith and D. Ricardo are considered the school’s finalists. According to the most common in the scientific world, the classics have exhausted themselves in the last third of the XIX century. works of J.S. Mill. With the development of classical political economy, with four conventions, four stages can be distinguished.
The firststage covers the period from the end of the XVII century. before the second half of the XVIII century. This is the stage of a substantial expansion of the sphere of market relations, reasoned refutation of the ideas of mercantilism and its complete debunking. The first representative and ancestor of the classical school should be considered the English economist W. Petty, whom Marx called "the father of political economy and, in some way, the inventor of statistics."
Secondstage The development of classical political economy covers the period of the last third of the 18th century. and is associated with the name and works of A. Smith. Its influence has affected more than one school.
Thirdstage The evolution of the classical school took place in the first half of the 19th century, when an industrial revolution ended in a number of developed countries. During this period, Smith's followers subjected to in-depth study and rethinking the basic ideas and concepts of their idol, enriched the school with fundamentally new and significant theoretical provisions. Representatives of this stage include J. B. Say, the British D, Ricardo, T. Malthus and N. Senior, and others. Each of them left a rather noticeable mark in the history of economic thought and the formation of market relations.
Fourth the final stage in the development of classical political economy covers the period of the second half of the 19th century, during which J. S. Mill and C. Marx summarized the best achievements of the school. On the other hand, by this time new, more progressive areas of economic thought were already gaining independent significance, later called “marginalism” (end of the 19th century) and “institutionalism” (beginning of the 20th century).
2. Key Representatives of Classical Political Economy
2.1 “Political Arithmetic” by William Petty
The beginning of the formation of the classical school was laid by William Petty (1623-1687). He is called the founder of statistics, a man who has expressed fragmentarily many interesting considerations and conclusions, paving the way for the creation of economic theory, economic science.
Petty was not interested in the outward manifestation, but in the essence of the economic processes; he tried to “explain the mysterious nature” of taxes and their consequences, money rent, land rent, money, the sources of wealth. In his opinion, the subject of studying political economy is primarily an analysis of the problems of the sphere of production, he believed that the creation and increase of wealth occurs exclusively in the sphere of material production.
In the Treaty on Taxes and Levies, Petty concludes that "there is a certain measure or proportion of the money needed to conduct a mill trade." Surplus or lack of money against this measure will harm her. Reducing the metallic content of money cannot be a source of wealth.
In his works, he examined what factors are involved in the production of goods and the creation of wealth. Petty identifies four factors. The first two are land and labor are basic. He believes that “the assessment of all objects should be led to two natural denominators: to land and labor, i.e. we should say: the cost of a ship or a frock coat is equal to the cost of such and such a certain amount of labor, because both the ship and the frock coat are produced by land and human labor. ”
Two other factors involved in creating the product are not basic. This is the qualification, the art of the employee and the means of his labor - tools, supplies and materials. They make labor productive. But both of these factors cannot exist independently, i.e. without labor and land.
Thus, Petty examined two measures of value - labor and land. In practice, he proceeded from the fact that in any type of labor there is something in common that allows one to compare all types of labor among themselves.
W. Petty believed that wealth is created primarily by labor and its results.
Petty made a number of theses, which contain the initial principles of the theory of value. Cost have money. The amount of money that can be received for a product determines its value. It is determined not directly through labor costs, but indirectly through the costs of producing money (silver and gold) offered for these products. Value is created not by all labor, but by the one spent on the production of silver.
The incomes of entrepreneurs and landowners are characterized by W. Petty through the concept of “rent” that he unified in essence. In particular, calling the rent from the land the difference between the cost of bread and the cost of its production, he replaced it with such a thing as a farmer’s profit.
One hundred years before A. Smith, W. Petty anticipated and put forward many ideas, which he later specified, put in a logical order, and freed A. Smith from some contradictions and inconsistencies.
2.2 Adam Smith: “A Study on the Nature and Causes of the Wealth of Nations”
Adam Smith is called the founder of the classical school. It was A. Smith (1723-1790), a professor and systematist, cabinet scientist and encyclopedic educated researcher, who developed and presented the economic picture of society as a system.
The work of A. Smith, “The Wealth of Nations,” is not a collection of recommendations, but a work that sets forth a certain concept in a systematic way. It is full of examples, historical analogies, references to economic practice.
Labortheorycost
What Petty expressed in the form of conjecture, Adam Smith justified as a system, an expanded concept. "The wealth of the people does not consist in one land, not in one money, but in all things that are suitable to satisfy our needs and to increase our enjoyment of life."
Unlike mercantilists and physiocrats, Smith argued that the source of wealth should not be sought in any particular occupation. Wealth is the product of the total labor of all - farmers, artisans, sailors, merchants, i.e. representatives of various types of labor and professions. The source of wealth, the creator of all values \u200b\u200bis labor.
According to Smith, the true creator of wealth is the “annual labor of every nation,” which is used for annual consumption. According to modern terminology, this is a gross national product (GNP).
He makes a distinction between those types of labor that are embodied in material things, and those that, like the work of a domestic servant, are a service, and the services "disappear at the very moment of their provision." If labor is useful, this does not mean that it is productive.
All wealth is created by labor, but the products of labor are not created for themselves, but for exchange ("each person lives by exchange or becomes, to a certain extent, a trader"). The meaning of a commodity society is that products are produced as goods for exchange. The point is not simply that the exchange of goods for goods is equivalent to the labor expended. The result of the exchange is mutually beneficial.
ABOUTseparationlaborandexchange
People are connected by the division of labor. It makes the exchange profitable for its participants, and a market, commodity society - effective. Buying someone else's labor, its buyer saves his labor.
According to Smith, the division of labor plays the most important role in increasing the productive power of labor and the growth of national wealth. The deeper the division of labor, the more intense the exchange.
"Give me what I need, and you will get what you need." “It is in this way that we receive from each other a much larger part of the services we need” - these are the provisions of Smith that are often quoted by commentators on his work.
"Invisiblearm"marketforces
One of the leading ideas of the "Wealth of Nations" is about an "invisible hand." The market economy is not controlled from a single center, is not subject to one general plan. Nevertheless, it functions according to certain rules, follows a well-known order.
The paradox or essence of the market mechanism is that private interest and pursuit of one’s own benefit brings benefits to society, ensures the achievement of the common good. In a market economy (in a market mechanism) there is an “invisible hand” of market forces, market mechanisms, involving minimal government intervention and market self-regulation based on free prices, which are formed depending on supply and demand under the influence of competition.
Twoapproachtoeducationcost
Considering the problem of pricing and the nature of prices, Smith put forward two points.
The first one says: the price of a product is determined by the labor expended on it. This provision, in his opinion, is applicable in "primitive societies." And Smith puts forward the second, according to which the cost, and therefore the price, consists of the cost of labor, profit, interest on capital, land rent, i.e. determined by production costs. The essence of these provisions is shown in Figure 1: the first position is in the form of a solid arrow with the inscription "Labor", and the second is expressed using dotted arrows with the inscriptions "Capital" and "Earth".
Principleeconomicof freedom
Smith believed that the market should be protected from external interference. Individual economic activity should not be impeded; it should not be strictly regulated. Smith opposes unnecessary restrictions on the part of the state, he is for freedom of trade, including foreign trade, for the policy of free trade, against protectionism.
Rolestateprinciplestaxation
Without completely rejecting state participation and control by the state, Smith assigns him the role of a “night watchman”, and not the regulator and regulator of economic processes.
Smith identifies three functions that the state is called upon to perform: the administration of justice, the defense of the country, the organization and maintenance of public institutions.
He also argues that tax payments should not be assigned to one class, as the physiocrats suggested, but to all equally - labor, capital and land.
Smith substantiates the principle of proportional distribution of the tax burden - according to the level of property solvency of taxpayers.
It is believed that Smith's three postulates (analysis of the “economic person”, the “invisible hand” of the market, wealth as an objective function and object of economic relations) still determine the vector of economic science. They form Smith's paradigm.
2.3 David Ricardo: “The Beginning of Political Economy”
David Ricardo (1772-1823) sought to overcome the inconsistency of individual provisions, to more clearly substantiate other provisions, to more fully develop the third.
Ricardo actually continued the formation of the fundamental principles of the classical school of political economy and, together with Smith, is considered its ancestor.
The main work of Ricardo - “The Beginning of Political Economy and taxation"(1817). Ricardo showed that, like A. Smith, he was primarily interested in the inevitable economic “laws”, the knowledge of which would make it possible to control the distribution of income generated in the sphere of material production.
Theorycost-positionRicardo
Denying Smith's dual assessment of this category, he categorically insists that only one factor, “labor,” underlies value. According to its wording, “the value of a commodity or the quantity of some other commodity for which it is exchanged depends on the relative amount of labor that is necessary for its production, and not on the greater or lesser remuneration that is paid for this labor”.
Theoryof money
D. Ricardo's positions on the theory of money were based on the provisions characteristic of the form of the gold coin standard, according to which the free and guaranteed exchange of paper money was subject to the amount of gold stipulated by law in the coin minted for circulation. With this in mind, the author of "Nachal" wrote that "neither gold nor any other product can always serve as the perfect measure of value for all things." In addition, D. Ricardo was a supporter of the quantitative theory of money, linking the change in their value as goods with their (money) quantity in circulation. He also believed that "money serves as a universal medium of exchange between all civilized countries and is distributed among them in proportions that change with each improvement in trade and machinery, with each increase in the difficulty of obtaining food and other necessities of life for a growing population." Finally, in his opinion, money as goods, while lowering their value, necessitates a rise in wages, which in turn “... is invariably accompanied by an increase in the price of goods”.
Theoryof income
The theory of income D. Ricardo significantly enriched the classical political economy in terms of the characteristics of the essence of rent, profit and wages.
Ricardo believed that rent was not the result of the “generosity” of nature, but its “poverty”, the lack of rich and fertile plots of land. The source of rent lies in the fact that land is the property of its owners. If air and water “could be turned into property” and were available in limited quantities, “then they, like the earth, would give rent”,
Justifying the process of rent formation, Ricardo refers to the growing demand for agricultural products associated with an increase in the population) and the process of involving more and more land in agricultural circulation.
Rent exists not only in the transition from the best lands to the worst. Prerequisites, conditions for its existence - differences in the quality, fertility, location of land, their degree of cultivation. Rent can take place in those cases when the land is occupied and requires more and more labor and capital. Rent is always paid for the use of land only because the amount of land is not unlimited, and its quality is not the same.
Ricardo's theory of rent was of practical importance. The provisions and conclusions justified by the English classic were directed against the establishment of high bread duties.
Ricardo’s theory of rent helps to understand his interpretation of the relationships and trends of basic incomes: wages, profits, rents.
At the beginning of his work, in the chapter “On Value”, Ricardo argued with Smith, who believed that an increase in wages leads to a change in the value and price of manufactured products. The value of the goods, said Ricardo, does not depend on the amount of remuneration for labor, but on the amount of labor required to produce the goods; it is determined by the amount of labor embodied in it.
Considering the relationship between profit and earnings of workers, Ricardo concludes that an increase in nominal wages leads to lower profits, because wage and profits are antagonistic, inversely related to each other. "Raising wages does not increase the price of goods, but invariably lowers profits." "Everything that increases wages, necessarily reduces profits."
According to Ricardo, the main trend that characterizes the dynamics of income is as follows: with the development of society, real wages remain unchanged, rent increases, and profit levels fall.
Theoryreproduction
Ricardo recognized the “law of the Sei markets,” that is, the dogma of a crisis-free and balanced state of the economy when fully employed. In particular, as if in recognition of the “Say Law,” he wrote: “Products are always bought for products or services; money serves only as a measure by which this exchange takes place. Some goods may be produced in excessive quantities, and the market will be so crowded that the capital spent on these goods will not even be reimbursed. But this cannot happen simultaneously with all goods. ”
Theory"Comparativecosts "
Ricardo proposed the theory of “comparative costs” (comparative advantages), which became the theoretical basis of the policy of “free trade” (free trade) and is used in modern versions to justify and develop the so-called “open economy” policy.
The general meaning of this concept is that if the governments of different countries do not impose any restrictions on foreign trade with each other, the economy of each country gradually begins to specialize in the production of those goods, the production of which requires less labor time. Free trade allows countries to consume no less quantities of goods than before specialization, minimizing the time required to create a given volume of goods. As a follower of Smith and Malthus, Ricardo made a significant contribution to the development and refinement of various specific problems of economic theory.
2.4 Jean Baptiste Say: “a treatise on political economy”
J.B. Say (1767-1832) was the largest representative of the classical school in France, a businessman and entrepreneur, scientist and professor of industrial economics - known as a popularizer of the works of the founders of the classical school, creator of his own, subjective concept of value (value). The main work of Zh.B. Seya - “A treatise of political economy, or a simple exposition of the way in which wealth is formed, distributed and consumed” (1803).
His concepts - to a greater extent than the concepts of other classics - led to the conclusion of the stability and consistency of the capitalist economy, for which he received the most fierce criticism of representatives of many heretical trends in economic science - from Marxists to Keynesians.
whatis anthe sourcevalues?
One of the starting points is Say’s position on the source of value (value) of goods and services. Unlike A. Smith, who reduced the source of income, ultimately, to labor (according to the labor theory of value), Say puts not the labor costs, but the utilities at the forefront: “utility communicates value to objects”.
According to Say's concept, utility is the criterion for performance. Therefore, labor of artisans and labor of farmers, labor of teachers and labor of doctors should be considered productive.
What matters is not the material form of the product, but the result of the activity. As a result of production activities, the service does not have to take the form of a material product.
Theoryproductionfactors
The theory of production factors is based on Say’s position on the decisive role of utility in shaping the value of wealth and increasing wealth.
J. B. Say was the first among the classics to clearly and unequivocally formulate the idea that the value of a product is equal to the sum of wages, profits and rents, i.e. the amount of income of the owners of production factors used in the manufacture of this product. Moreover, according to J. B. Sayu, each factor of production is involved in the production process, providing its service, and therefore contributes to the creation of the value of goods. The value of such a contribution is determined in the market for a particular product. The size of wages characterizes the contribution of labor, the amount of interest - the contribution of capital, the size of land rent - the contribution of land. Entrepreneurial profit boils down to the wages of highly skilled labor associated with the organization of production activity, that is, an effective combination of other factors of production. The French economist attached particular importance to this type of labor — the work of the entrepreneur. It is the entrepreneurs who provide the supply of finished goods and make a demand for factors of production, thereby giving employment to the workforce. They also distribute wealth.
Lawof marketsSay
As part of his theory of sales markets, Say formulated a law, later named after him. According to Say's theory of sales markets, “sales for products are created by production itself”, i.e. supply creates demand. These are two equivalent formulations of Say's law.
This law, in turn, leads to the following consequences:
General overproduction is impossible;
What is beneficial for an individual business entity is beneficial for the economy as a whole;
Import is beneficial for the economy because it is paid for by its products;
Those forces of society that consume, but do not produce, ruin the economy.
Say's market theory led to the idea of \u200b\u200binternal stability and the sustainability of a capitalist economy. Unemployment and declines in production should - on its basis - be interpreted as temporary phenomena that have no long-term significance. This point of view on the macroeconomic stability of a market economy was refuted only in the 1930s.
Conclusion
The classical school took shape in the second half of the XVIII - the first half of the XIX century. Classical economists, who replaced the mercantilists, made a significant contribution to the formation of the foundations of economic science.
The classical school made the sphere of production, not circulation, the main object of study; revealed the importance of labor as the basis and measure of the value of all goods, as a source of wealth for society; proved that the economy should be regulated by the market and has its own laws that are objective, i.e. cannot be canceled by either kings or governments; identified sources of income for all walks of life.
New concepts, provisions, conclusions, to one degree or another, rely on the works and development of predecessors, on the terminology developed by them, systematize and streamline the theoretical wealth accumulated earlier.
The classical school laid a significant foundation for economic theory, paving the way for further improvement, deepening and development.
The classical school of political economy is one of the mature areas of economic thought that left a deep mark in the history of economic doctrines. The economic ideas of the classical school have not lost their significance to this day. The classical trend originated in the 17th century and flourished in the 18th and early 19th centuries. The greatest merit of the classics is that they put labor at the center of economics and economic research as a creative force and value as the embodiment of value, thereby laying the foundation for the labor theory of value. The classical school has become a forerunner of the ideas of economic freedom, a liberal trend in the economy. Representatives of the classical school developed a scientific idea of \u200b\u200bsurplus value, profit, taxes, land rent. In the bowels of the classical school, in fact, economic science was born.
Merits of the classical school:
1. She made the main object of study the sphere of production, not circulation.
2. Disclosed the importance of labor as the basis and measure of the value of all goods, as a source of wealth for society.
3. She proved that the economy should be regulated by the market and has its own laws that are objective, that is, cannot be canceled by either kings or governments.
4. Revealed sources of income for all walks of life: entrepreneurs, workers, landowners, bankers, merchants.
The mainideasclassicalpoliticalsavingare:
A person is considered only as an “economic person”, who has only one desire - the desire for his own benefit, to improve his position. Morality, culture, customs, etc. not taken into account.
All parties involved in an economic transaction are free and equal before the law, and in the sense of foresight and foresight.
Each economic entity is fully aware of prices, profits, wages and rents in any market, both now and in the future.
The market provides complete mobility of resources: labor and capital can instantly move to the right place.
The elasticity of the number of workers in wages is not less than one. In other words, any increase in wages leads to an increase in the number of labor, and any decrease in wages leads to a decrease in the number of labor.
The sole purpose of the capitalist is to maximize return on capital.
In the labor market, there is absolute flexibility in cash wages (its value is determined only by the ratio between supply and demand in the labor market).
The main factor in increasing wealth is the accumulation of capital. Competition must be perfect, and the economy free from excessive state intervention. In this case, the “invisible hand” of the market will ensure the optimal allocation of resources.
List of references
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2. Bartenev S.A. History of Economic Thought. M .: Yurist, 2002.456 p.
3. Bartenev SA, Economic theories and schools, M., 1996.
4. Blaug M. Economic thought in retrospect. M .: "Case Ltd.", 1994.
5. Voitov A.G. History of Economic Thought. Short course: Tutorial. 2nd ed. M .: Publishing House "Dashkov and K about", 2001. 104 p.
6. Galbraith J.K. Economic theories and goals of society. M .: Progress, 1979.
7. Dadalko V.A. World Economy: Textbook. allowance. M .: "Urajay", "Interpresservis", 2001.592 s.
8. Jean-Marie Albertini, Ahmed Silem. "Understand economic theories." A small guide to large currents, translation from French, M., 1996.
9. Zhid Sh., Rist Sh. History of economic doctrines. M .: Economics, 1995.
10. Kondratiev N.D. Fav. Op. M .: Economics, 1993.
12. Negesi T. History of economic theory. M .: Aspect - press, 1995.
13. Yadgarov Ya.S. History of Economic Thought. M., 2000.
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The classical school of political economy arose at the time of the birth and establishment of the capitalist mode of production. In the 16th century in England, in the bowels of the feudal system, new, capitalist relations began to develop. Gradually, with the development of manufactories, merchant capital is subordinated to industrial capital. However, mercantilism, which studied the problems of circulation, gives way to the classical school, which transferred research to the sphere of production. From the works of the classical school began political economy as a science. It was the classics who made an attempt - and not unsuccessfully - to present the entire diversity of the economic world as a whole, to bring together separate provisions, conjectures, observations, conclusions, to isolate and agree on categories and concepts.
An appeal to the writings of the founders of economic theory, as a rule, has no direct, narrowly utilitarian significance. However, it is not without interest that some modern authors, using the programming apparatus, try to mathematically verify the correctness of A. Smith's basic postulates, the consistency of the most important provisions of his work.
Adam Smith (1723-1790) is a brilliant English economist, the founder of classical political economy. In 1776 the famous work of the scientist "Research on the nature and causes of the wealth of peoples" was published. Since the advent of this book, political economy has emerged as an independent economic science.
Smith's idea of \u200b\u200ban “invisible hand” is one of the main ideas of Wealth of Nations. The meaning of this aphoristic expression is as follows.
Smith proceeds from the fact that the desire of everyone to their own benefit, to increase personal wealth is the most important motive for human activity. This is the driving force of actions. And this is a prerequisite for creating a fair and rational order in society.
Each member economic activity guided by their own interests, pursues personal goals. Influence individual person to realize the needs of society is almost imperceptible. But, pursuing their own benefit, a person ultimately contributes to an increase in the social product, the growth of the common good. The “invisible hand” of market laws directs to a goal that was not at all part of the individual’s intentions. Smith showed the incentive power and importance of personal interest as an internal spring of competition and economic mechanism.
David Ricardo (1772-1823) is one of the most prominent figures in the classical political economy of England, a follower and active opponent of certain theoretical points of Adam Smith. Riccardo's economic theory is the first scientific system of political economy during the period of industrial capitalism. Ricardo was a follower of Smith in an attempt to systematize economic knowledge and search for methods of theoretical explanation of the economy.
As you know, D. Ricardo consistently adhered to the labor theory of value. Labor has its price, which, in his opinion, is determined by the cost of the living means required for the maintenance of the worker and his family. A change in wages does not affect the value (and price) of the products produced. Only the ratio between the size of wages and profits earned by the entrepreneur changes: "Everything that increases wages, necessarily reduces profits." Thus, wages and profits are inversely related.
According to D. Ricardo, the value of a commodity or the quantity of some other commodity for which it is exchanged depends on the relative amount of labor that is necessary for its production, and not on the greater or lesser remuneration paid for this labor.
A prerequisite for wealth growth is the division of labor. With an analysis of the division of labor, Smith begins his research. The division of labor increases the agility of each employee, provides time savings in the transition from operation to operation. It promotes the use of more advanced machines and mechanisms, more effective techniques that facilitate work, making it more productive.
Smith's famous example of pin-shop work is mentioned in many textbooks. If everyone, working alone, performs all operations, then in a day of work he is able to produce 20 pins. If the workshop employs 10 workers, each of which specializes in one operation, then together they will produce 48,000 pins. As a result of the manufacture organization of labor, its productivity increases by 240 times.
Among other factors of increasing wealth, Smith identifies population growth, an increase in the share of the population participating in production, the transition from manufactory to factory, freedom of competition, and the elimination of customs barriers.
In the work of D. Ricardo, "The Beginning of Political Economy and Taxation," there is a special chapter, "Value and Wealth, Their Distinctive Properties." Ricardo believes that it would be wrong to equate an increase in value with an increase in wealth. Unlike Smith, he distinguishes between value and material wealth. The size of wealth, its increase depends on the availability of necessities and luxury at the disposal of people. No matter how the value of these items changes, they will equally satisfy their owner. Value differs from wealth, it "does not depend on abundance, but on the difficulty or ease of production."
A prerequisite for increasing wealth, says Ricardo, is the growth of labor productivity. The lower the cost of producing a unit of goods, the higher the results of labor efforts, the greater the size of wealth. Ricardo considered the category of capital as part of the country's wealth, which is used in production and consists of food, clothing, tools, raw materials, machines necessary to set in motion labor.
John Stuart Mill (1806-1873) - The last representative of the English classical political economy. His main work on economic theory, “Fundamentals of Political Economy and Some Aspects of Their Application to Social Philosophy,” was published in 1848.
In his work, “The Principles of Political Economy,” he sought to unite and agree on the ideas and positions of his predecessors and colleagues, although there were many differences in their approaches to the analysis of economic reality. Mill acts not only as a taxonomist and popularizer of economic knowledge. He managed to deepen or clarify a number of provisions, find more comprehensive formulations, more fully argue conclusions and conclusions.
Population theory is the only way to ensure full employment and high wages by voluntarily restricting population growth:
- 1. The theory of productive labor: only productive labor, the results of which are tangible, creates wealth. New is labor on property protection and the acquisition of qualifications
- 2. wages - wages for labor and depends on the supply and demand for labor. All other things being equal, wages are lower if labor is less attractive?
- 3. rent theory - compensation paid for the use of land
- 4. relative value: the creation of value by labor, the distinction between exchange and use value
- 5. a change in the amount of money affects the change in the relative prices of goods (quantitative theory of money)
Mill set the task to write an updated version of A. Smith's “Wealth of Nations”. And he succeeded to a certain extent. Throughout the second half of the nineteenth century, Mill's book (1848) was the undisputed bible of economists.
So, Mill systematized, deepened the ideas, positions, methodology of the classics. His “Principles of Political Economy” is not a new system, but the development of the old concept of the classical school, its updated version.
The processes taking place in the economy, the "classics" presented in the most generalized form as a sphere of interrelated laws and categories, as a logically structured system of relations.
A. Smith and D. Ricardo showed that the source of wealth is not foreign trade (mercantilists), not nature as such (physiocrats), but the sphere of production, labor activity in its various forms. The labor theory of value (value), which does not completely refute the usefulness of the product, served as one of the starting points of political economy.
The founders of the first truly scientific school tried to answer the question of what is the measure of labor. The interconnectedness of the main factors of production was demonstrated; problems are identified that did not fit into the strict framework of classical theory.
From the search for external forces or the appeal to the “reason” of power structures, Smith and Ricardo turned the analysis into the sphere of identifying the internal causes underlying the functioning of a market economy. The point is not simply the multidimensionality of the analytical conclusions of the classics, but their logic and consistency. The positions and conclusions reached by the "classics" received a more complete and detailed disclosure in the writings of followers and opponents.
Classical school is not just a combination of principles and postulates. Such an assessment of the school would have been too general, in many ways formal. Classical theory is “scaffolding” and at the same time the fundamental basis of science, open to the development and deepening, refinement and expansion of topics, improvement of methodology, substantiation of new conclusions and conclusions. The works of these greatest representatives of the school of classical political economy are still relevant, because the world economy is developing according to their postulates.
1. In classical political economy, the priority method of economic analysis is:
A) the empirical method;
B) a functional method;
C) causal method.
2. The subject of study of classical political economy is:
A) scope of circulation;
B) the scope of production;
C) the scope of circulation and the scope of production at the same time.
3. According to classical political economy, wages as a worker’s income gravitate:
A) to a physiological minimum;
B) to cost of living;
C) to the highest possible level.
4. In accordance with the classical political economy, money is:
A) the artificial invention of people;
B) the most important factor economic growth;
C) a technical tool, a thing that facilitates the exchange.
5. The founder of the class method of analysis, theories of capital, productive labor, reproduction is:
A) F. Quesnay;
B) A. Smith;
C) K. Marx.
6. What was the basis of the physiocrat system?
A) the primacy of agriculture as the basis of society;
B) analysis of social reproduction and its categories;
C) the primacy of the sphere of circulation.
A) the nominalist theory of money;
B) the metal theory of money;
C) the quantitative theory of money.
8. In what era did the “INVISIBLE HAND” position arise?
A) an unregulated market economy;
B) to a market economy;
C) a regulated market economy.
A) F. Quesnay, A. Turgot, A. Smith;
B) A. Serra, W. Stafford;
B) T.Men, A.Monkretien;
D) I. Pososhkov.
10.U. Petty and P. Boisguillebert are the founders of the theory of value defined by:
A) labor costs (labor theory);
B) production costs (theory of costs);
C) marginal utility.
11. According to the classification proposed by F. Quesnay, farmers represent:
A) productive class;
B) the class of land owners;
C) a barren class.
12. According to the teaching of F. Quesnay about the "pure product" the latter is created:
A) in trade;
B) in agricultural production;
C) in industry.
A) A. Turgot;
B) A. Smith;
C) F. Quesnay.
14. What was the original name (at the beginning of the 17th century) of economic theory?
A) economics;
B) the science of wealth;
C) political economy;
D) the history of economic doctrines.
A) A. Smith; a) "Book of poverty and wealth"
B) W. Petty; b) “Research on the nature and causes of the wealth of peoples”
C) I. Pososhkov; c) "Labor is the father of wealth, the earth is his mother."
16. Turgot considers labor to be the only source of all wealth:
A) a merchant;
B) the farmer (farmer);
C) artisan;
D) loan shark;
E) the peasant community.
17.According to A. Smith, much more value to actual wealth and income adds capital invested:
A) in trade;
B) in agriculture;
C) in industry.
18. According to the methodological position of A. Smith, private interest:
A) is not separable from the general interest;
B) stands above the public;
C) secondary to the public.
19.A. Smith showed that the main stimulus for human economic activity is:
A) high rates of development;
B) private interest;
C) advanced technical equipment of production.
20.A. Smith emphasized that natural price is equalized by market due to
A) use value and full utility;
B) exchange value;
C) fluctuations in supply and demand;
D) the constancy of the cost of labor, fixed costs;
D) the fact that labor is value;
E) a three-factor composition;
G) the ratio between the quantities of labor in production.
21. All people employed in agricultural production, F. Quesnay assigned to the class:
A) owners;
B) wage workers;
B) barren;
D) productive.
Novokuznetsk branch of Tomsk State University of Architecture and Civil Engineering
ABSTRACT ON THE TOPIC:
Classical political economy, economic studies of A. Smith, D. Ricardo, T. Malthus, S. Mil.
Novokuznetsk 2010
Introduction
1. CLASSICAL POLITICAL ECONOMY
1.1 General characteristics of the classic direction
1.2 Stages of evolution of classical political economy
1.3 Features of the subject and method of studying classical political economy
2. ECONOMIC TEACHINGS OF THE REPRESENTATIVES OF THE CLASSICAL SCHOOL
2.1 Economic doctrine of A. Smith
2.2 Economic doctrine of D. Ricardo
2.3 Economic doctrine of T. Malthus
2.4 Economic doctrine of J. C. Mill
CONCLUSION
BIBLIOGRAPHY
Introduction
This work characterizes the classical direction in the history of economic studies. It examines the following range of issues: how the term “classical political economy” is interpreted in economic science; what stages does classical political economy cover in its development; what are the features of the subject and method of studying the "classical school", as well as the basic economic theories at the four stages of development of the classical school of political economy.
The history of economic doctrines is an integral part in the cycle of general educational disciplines in the direction of “economics”.
The subject of this discipline is the historical process of the emergence, development and change of economic ideas and concepts presented in the theories of individual economists
Methodologically, the history of economic doctrines is based on a set of progressive methods of economic analysis. These include methods: historical, logical abstraction, systemic.
The history of economic doctrines dates back to the ancient world, i.e. the appearance of the first states. From then until now, constant attempts have been made to systematize economic views in the economic theory adopted by society as a guide to action in the implementation of economic policy. Moreover, as changes occur in the economy, science, technology and culture, economic theory is constantly updated and improved.
1. CLASSICAL POLITICAL ECONOMY1.1 General characteristics of classical political economy
Classical political economy arose when entrepreneurial activity, following the sphere of trade, money circulation and loan operations, also spread to many industries and the production sector as a whole. Therefore, already in the manufacturing period, which highlighted the capital employed in the production sector, the protectionism of mercantilists lost their dominant position to a new concept - the concept of economic liberalism based on the principles of state non-interference in economic processes, unlimited freedom of competition for entrepreneurs.
The socioeconomic transformations that have taken place have also changed the nature of political economy. As you know, from the beginning of the XVII century. after the publication of The Treatise of Political Economy A.N. Moncretienne (1615) the essence of political economy was reduced by the conductors of an administrative (protectionist) decision economic problems to the science of state economy. But by the end of the XVII century. and subsequently, the manufacturing economy of the most developed European countries reached such a level that the "advisers to the king" could no longer convince him of the ways to increase the country's wealth through "... work on gold, on containing imports and promoting exports, and on a thousand detailed orders aimed at establishing control over the economy ”1.
The indicated period marked the beginning of a truly new school of political economy, which is called classical, first of all, for the truly scientific nature of many of its theories and methodological principles that underlie modern economic science. It is thanks to the representatives of classical political economy that economic theory has gained the status of a scientific discipline, and still, when they say "classical school", they mean a school that remains true to the principles bequeathed by the first teachers of economic science, and tries to prove them best, develop and even correct, but without changing in them what constitutes their being. ”2
As a result of the decomposition of mercantilism and the strengthening of the growing tendency to limit direct state control over economic activity, “pre-industrial conditions” lost their former significance and “free private enterprise” prevailed. The latter, according to P. Samuelson, led to "conditions of complete laissez faire (i.e., absolute non-interference of the state in business life), events began to take a different turn", and only "... from the end of the XIX century. in almost all countries there was a steady expansion of the economic functions of the state ”3.
In fact, the principle of “full laissez faire” became the main motto of a new direction of economic thought - classical political economy, and its representatives distinguished between mercantilism and the protectionist policies advocated by him in the economy, putting forward an alternative concept of economic liberalism. At the same time, the classics enriched economic science with many fundamental principles, which in many respects did not lose their relevance to the present.
It should be noted that for the first time the term “classical political economy” was used by K. Marx, one of its finalists, in order to show its specific place in “bourgeois political economy”.
1.2 Stages of evolution of classical political economyand
According to generally accepted estimates, classical political economy originated in the late XVII - early XVIII centuries. in the writings of W. Petty (England) and P. Boisguillebert (France). Its completion time is considered from two theoretical and methodological positions. One of them, the Marxist one, indicates the period of the first quarter of the 19th century, and the English scholars A. Smith and D. Ricardo are considered the school’s finalists. According to another - the most common in the scientific world - classics have exhausted themselves in the last third of the XIX century. works of J.S. Mill.
Briefly, the essence of these positions is as follows. According to Marxist theory, it is claimed that classical political economy ended at the beginning of the 19th century. and was replaced by "vulgar political economy" because the founders of the latter - JB Say and T. Maltus - seized, according to K. Marx, "for the appearance of appearances and the opposite of the law of the phenomenon." In this case, the author of Capital considers the “law of surplus value” discovered by him as the main argument justifying the chosen position. This "law", in his opinion, stems from the central link of the teachings of A. Smith and D. Ricardo - the labor theory of value, abandoning which the "vulgar economist" is doomed to become an apologist for the bourgeoisie, trying to hide the exploitative essence in the relations of capitalist appropriation created by the working class surplus value. Karl Marx’s conclusion is unequivocal: the “classical school” convincingly revealed the antagonistic contradictions of capitalism and led to the concept of a classless socialist future.
With the development of classical political economy, with four conventions, four stages can be distinguished.
The first stage covers the period from the end of the XVII century. before the second half of the XVIII century. This is the stage of a substantial expansion of the sphere of market relations, reasoned refutation of the ideas of mercantilism and its complete debunking. The main representatives of the beginning of this stage, W. Petty and P. Buagilber, irrespective of each other, were the first in the history of economic thought to put forward the labor theory of value, according to which the source and measure of value is the amount of labor spent on the production of a particular commodity product or good. Condemning mercantilism and proceeding from the causal dependence of economic phenomena, they saw the basis of the wealth and welfare of the state not in the sphere of circulation, but in the sphere of production.
The so-called school of physiocrats, which became widespread in France in the middle and beginning of the second half of the 18th century, completed the first stage of classical political economy. The leading authors of this school F. Quesnay and A. Turgot, in search of a source of a pure product (national income), attached crucial importance to land along with labor. Criticizing mercantilism, the physiocrats went even deeper into the analysis of the sphere of production and market relations, although mainly in the field of agriculture, illegally moving away from the analysis of the sphere of circulation.
The second stage in the development of classical political economy covers the period of the last third of the 18th century. and undoubtedly connected with the name and works of A. Smith - the central figure among all its representatives. His “economic man” and “invisible hand” of providence convinced more than one generation of economists about the natural order and inevitability, regardless of the will and consciousness of people, the spontaneous action of objective economic laws. Largely thanks to him until the 30s. The twentieth century was considered irrefutable position on the complete non-interference of government regulations in free competition.
Further, we note that the laws of the division of labor and the growth of its productivity, which were discovered by A. Smith (based on the analysis of the pin factory), are rightfully considered to be classical. To his theoretical research, modern concepts about a product and its properties, incomes (wages, profits), capital, productive and unproductive labor, and others are also largely based.
The third stage of the evolution of the classical school of political economy was in the first half of the 19th century, when an industrial revolution ended in a number of developed countries. During this period, the followers, including the students of A. Smith (as many of them called themselves) subjected to in-depth study and rethinking the main ideas and concepts of their idol, enriched the school with fundamentally new and significant theoretical propositions. Among the representatives of this stage, it is worth highlighting the French J.B.Say and F. Bastia, the English D. Ricardo, T. Malthus and N. Senior, the American G. Carey and others.
D. Ricardo more than his other contemporaries argued with A. Smith. But, fully sharing the latter’s views on the incomes of the “main classes of society," he first revealed the pattern of the tendency for the rate of profit to decrease, developed a complete theory of the forms of land rent. His merits also include one of the best justifications for the laws governing the change in the value of money as goods, depending on their quantity in circulation.
To the triad of classical economists - followers of Smith's political economy - it is justified, along with D. Ricardo and J. B. Say, to take away T. Malthus. This scientist, in particular, in developing the imperfect concept of A. Smith on the mechanism of social reproduction (according to Marx, “Dogma Smith”) put forward a theoretical position on “third parties”, according to which he substantiated the real participation in the creation and distribution of the aggregate social product only productive, but also unproductive layers of society. T. Maltus also belongs to the idea, which has not lost its relevance in our time, about the impact on the welfare of society of the number and rate of population growth, which also indicates the interdependence of economic processes and natural phenomena.
The fourth final stage in the development of classical political economy covers the period of the second half of the 19th century, during which J.S. Mill and K. Marx summarized the best achievements of the school: On the other hand, by this time new, more progressive directions of economic thought had already acquired an independent meaning. subsequently called “marginalism” (end of the 19th century) and “institutionalism” (beginning of the 20th century). As for the innovation of the ideas of the Englishman J.S. Mill and K.Marx, who wrote his works in exile from his native Germany, these authors of the classical school, being strictly committed to the provision on the effectiveness of pricing in a competitive environment and condemning class bias and vulgar apologetics in economic thought nevertheless, they were sympathetic to the working class, were turned “to socialism and reform” 14. Moreover, Marx, in addition, emphasized the increasing exploitation of labor by capital, which, aggravating the class struggle, should, in his opinion, inevitably lead to the dictatorship of the proletariat, the “withering away of the state” and the equilibrium economy of a classless society13.
1.3 Features of the subject and method of studying classical political economy
Continuing the general characterization of the almost two hundred-year history of classical political economy, it is necessary to single out its common features, approaches and trends in terms of the subject and method of study and give them an appropriate assessment. They can be reduced to the following generalization.
Firstly, the rejection of protectionism in the economic policy of the state and the predominant analysis of the problems of the sphere of production in isolation from the sphere of circulation, the development and application of progressive methodological research methods, including causal (causal), deductive and inductive, logical abstraction. At the same time, the approach from class positions to the observed “laws of production” and “productive labor” removed any doubts that the predictions obtained by logical abstraction and deduction should be subjected to experimental verification. As a result, the opposition between the spheres of production and circulation, productive and unproductive labor, which is characteristic of the classics, has led to an underestimation of the regular relationship between the economic entities of these spheres (the “human factor”), the inverse effect on the production sphere of monetary, credit and financial factors and other elements of the circulation sphere.
Thus, taking as a subject of study only the problems of the sphere of production, the classical economists, in the words of M. Blaug, “emphasized that the conclusions of economic science are ultimately based on postulates equally drawn from the observed“ laws of production ”and subjective introspection ”16.
Moreover, the classics in solving practical problems gave answers to the main questions, posing these questions, as N. Kondratyev put it, “evaluatively”. For this reason, he believes, the result was "... answers that have the character of evaluative maxims and rules, namely: a system based on freedom of economic activity is the most perfect, freedom of trade is most conducive to the prosperity of the nation, etc." This circumstance also did not contribute to the objectivity and consistency of economic analysis and theoretical generalization of the classical school of political economy.
Secondly, based on causal analysis, calculations of average and total values economic indicators, classics (unlike mercantilists) tried to identify the mechanism of origin of the value of goods and price level fluctuations in the market not in connection with the “natural nature” of money and their quantity in the country, but in connection with production costs or, in another interpretation, the amount of labor expended . Undoubtedly, since the time of classical political economy, there was no other economic problem in the past, and N. Kondratyev also pointed to this, which would attract “... such close attention of economists, the discussion of which would cause so much mental stress, logical tricks and polemical passions, as a problem of value. And at the same time, it seems difficult to point out another problem, the main directions in the solution of which would remain as irreconcilable as in the case of the problem of value ”18.
However, the costly principle of determining the price level by the classical school was not linked to another important aspect of market economic relations - the consumption of a product (service) with a changing need for a particular good with the addition of a unit of this good. Therefore, the opinion of N. Kondratiev, who wrote: “The previous excursion convinces us that until the second half of the 19th century in social economy there is no conscious and distinct separation and distinction between theoretical or practical value judgments. As a rule, authors are convinced that those judgments that are actually value judgments are just as scientific and justified as those that are theoretical ones. ”19 Several decades later (1962), L. von Mises made a similar opinion in many respects. “Public opinion,” he writes, “is still impressed by the scientific attempt of representatives of classical economic theory to cope with the problem of value. Unable to resolve the obvious pricing paradox, the classics could not trace the sequence of market transactions down to the final consumer, but were forced to start their construction with the actions of a businessman for whom consumer utility ratings are given. ”
Thirdly, the category “value” was recognized by the authors of the classical school as the only initial category of economic analysis, from which other derivatives of the category, in essence, branch out (grow) from the genealogical tree. In addition, this kind of simplification of analysis and systematization led the classical school to the fact that economic research itself imitated a mechanical observance of the laws of physics, i.e. the search for purely internal causes of economic prosperity in society without taking into account the psychological, moral, legal and other factors of the social environment.
These shortcomings, referring to M. Blaug, could partly be explained by the impossibility in the social sciences of a completely controlled experiment, as a result of which “economists need much more facts than, say, physicists” in order to discard any theory. 22 M. Blaug himself, however, clarifies: “If the conclusions of the theorems of economic theory could be unambiguously verified, no one would ever have heard of the unrealistic assumptions. But the theorems of economic theory cannot be unambiguously verified, since all predictions here are probabilistic in nature. ” And yet, if we do not avoid condescension, we can agree with L. Mises that “many epigones of classical economists saw the task of economics in studying invalid events, but only those forces that in some way didn’t understand the occurrence of real phenomena. "
Fourth, exploring the problems of economic growth and improving the well-being of the people, the classics not only proceeded (again, unlike mercantilists) from the principle of achieving an active trade balance (surplus), but tried to justify the dynamism and equilibrium of the country's economy. However, at the same time, as you know, they did without serious mathematical analysis, the application of methods of mathematical modeling of economic problems, allowing you to choose the best (alternative) option from a certain number of states of the economic situation. Moreover, the classical school considered the achievement of equilibrium in the economy automatically possible, sharing the aforementioned "law of markets" by JB Say.
Finally, fifthly, money, long since and traditionally considered to be an artificial invention of people, during the period of classical political economy was recognized as a commodity that spontaneously stood out in the commodity world, which cannot be “canceled” by any agreements between people. Among the classics, the only one who demanded the abolition of money was P. Boisguillebert. At the same time, many authors of the classical school until the middle of the XIX century. they did not attach due importance to the various functions of money, highlighting basically one - the function of the medium of circulation, i.e. treating a monetary commodity as a thing, as a technical tool convenient for exchange. Underestimation of other functions of money was due to a misunderstanding of the inverse effect on the sphere of production of monetary factors.
Among the followers of the ability of A. Smith in the post-manufacturing period, i.e. in the first half of the 19th century, the names of D. Ricardo, J.B.Say, T. Maltus, N. Senior, F. Bastia and some other economists are primarily mentioned in the history of economic thought. Their work bears the imprint of the "new" time, which showed that economic science should again begin to reflect on the achievements of the "Wealth of Nations" in many economic categories and theories.
2. ECONOMIC TEACHINGS OF THE REPRESENTATIVES OF THE CLASSICAL SCHOOL
2.1 The Economic Doctrine of Adam Smith
Adam Smith was born on June 5, 1723. In the second half of 18 in England there were favorable conditions for the rise of economic thought. Classical political economy reached its highest development in the writings of British scholars Adam Smith and David Ricardo. Like their predecessors, the founders of the classical school viewed economics as a doctrine of wealth and how to increase it.
The main work of Adam Smith on political economy is the fundamental work - "Research on the nature and causes of the wealth of peoples." Smith's book consists of five parts. In the first, he analyzes the issues of value and income; in the second, the nature of capital and its accumulation. In them he outlined the foundations of his teachings. In the remaining parts, he considers the development of the European economy in the era of feudalism and the formation of capitalism, the history of economic thought and public finances.
Adam Smith explains that the main theme of his work is economic development: forces acting temporarily and controlling the wealth of nations.
“A study of the nature and causes of wealth” is the first full-fledged work in economic science that sets forth the general basis of science — the theory of production and distribution. Then an analysis of the action of these abstract principles on historical material and, finally, a series of examples of their application in economic policy. Moreover, all this work is imbued with the lofty idea of \u200b\u200ban “obvious and simple system of natural freedom”, to which, as it seemed to Adam Smith, the whole world was heading. The central motive - the soul of the "Wealth of Nations" - is the action of the "invisible hand"; we get our bread not by the grace of the baker, but from his selfish interest. Smith was able to guess the most fruitful idea that under certain social conditions, which we nowadays describe with the term “working competition,” private interests can indeed be harmoniously combined with the interests of society. A market economy that is not governed by collective will and is not subject to a single plan, nevertheless, follows strict rules of behavior. The impact on the market situation of the actions of one individual, one of the many, can be imperceptible. And in fact, he pays the prices that are requested from him, and can choose the amount of goods at these prices, based on his greatest benefit. But the totality of these individual actions sets prices; each individual buyer obeys prices, and the prices themselves obey the totality of all individual reactions. Thus, the “invisible hand” of the market provides a result that does not depend on the will and intention of the individual.
Moreover, this market automatism may well, in a sense, optimize the distribution of resources. Smith removed the burden of proof and created a postulate: decentralized, atomistic competition in a sense ensures "maximum satisfaction of needs." Undoubtedly, Smith gave a deep meaning to his doctrine of "maximum satisfaction of needs." He showed that:
Free competition seeks to equate prices with production costs, optimizing the distribution of resources within these industries;
Free competition in the markets for factors of production seeks to equalize the net benefits of these factors in all sectors and thereby establish the optimal distribution of resources between sectors.
He did not say that various factors would be combined in optimal proportions in production or that goods would be optimally distributed among consumers. He did not say that economies of scale and the side effects of production often interfere with the achievement of a competitive optimum, although the essence of this phenomenon is reflected in his reasoning about public works. But he really took the first step to the theory of the optimal distribution of these resources in conditions of perfect competition.
In fairness, it should be noted that his own faith in the advantages of the "invisible hand" is least of all connected with considerations about the efficiency of resource allocation in static conditions of perfect competition. He considered a decentralized price system to be desirable because it gives dynamic results: it expands the market, multiplies the benefits associated with the division of labor - in a word, it works as a powerful engine that provides capital accumulation and revenue growth.
Smith was not content with declaring that free market economy provides the best lifestyle. He pays a lot of attention to the precise definition of the institutional structure that would guarantee the best performance of market forces.
He understands that:
personal interests can equally hinder and contribute to the growth of the welfare of society;
the market mechanism will establish harmony only when it is included in the appropriate legal and institutional framework.
2.2 Economic doctrine of D. Ricardo
David Ricardo (1772-1823) is one of the brightest personalities of the classical political economy of England, a follower and at the same time an active opponent of certain theoretical positions of the great A. Smith's heritage. All economic system Ricardo arose as a continuation, development and criticism of Smith's theory. At the time of Ricardo, the industrial revolution was in its infancy, the essence of capitalism was far from fully manifested. Therefore, the teachings of Ricardo continues the ascending line of development of the classical school.
The peculiarity of Ricardo’s position is that the subject of political economy is the study of the sphere of distribution. In his main theoretical work, “The Beginning of Political Economy and Taxation,” Ricardo writes, referring to the distribution of the social product: “To determine the laws that govern this distribution is the main task of political economy.” One might get the impression that in this matter Ricardo takes a step backward compared to A. Smith, since he puts forward the sphere of distribution as an object of political economy. However, in reality this is not so at all. First of all, Ricardo did not at all exclude the sphere of production from the object of his analysis. At the same time, the emphasis that Ricardo places on the sphere of distribution is aimed at highlighting the social form of production as his own subject of political economy. And although the problem has not been brought to Ricardo's full scientific solution, the significance of such a formulation of the question in the writings of the finalist of the classical school can hardly be overestimated.
In the works of Ricardo, in fact, an attempt is made to single out the production relations of people in contrast to the productive forces of society and to declare these relations their own subject of political economy. Ricardo actually identifies the totality of production relations with distribution relations, thereby significantly limiting the scope of political economy. Nevertheless, Ricardo gave a deep interpretation of the subject of political economy, came close to the secrets of the social mechanism of the capitalist economy. For the first time in the history of political economy, he laid the basis of the economic theory of capitalism with the labor theory of value, which reflects the general relations most characteristic of capitalism, namely commodity relations.
The new that Ricardo introduced into the labor theory of value is due, first of all, to a change in the historical situation, the transition of manufactory capitalism to capitalism of the machine level. An important merit of Ricardo is that, based on the labor theory of value, he came closer to understanding the unified basis of all capitalist incomes - profit, land rent, and interest. Although he did not discover surplus value and the law of surplus value, however, Ricardo clearly saw that labor is the only source of value and, therefore, the income of classes and social groups not participating in production is actually the result of the appropriation of unpaid labor of others.
Ricardo’s profit theories have two crucial contradictions:
The contradiction between the law of value and the law of surplus value, which was reflected in the inability of Ricardo to explain the origin of surplus value from the point of view of the law of value;
The contradiction between the law of value and the law of average profit, which was expressed in the fact that he failed to explain the average profit and the price of production from the standpoint of the theory of labor value.
The main drawback of D. Ricardo's theory is his identification of labor power as a commodity with its function - labor. Thus, he avoids the problem of elucidating the essence and mechanism of capitalist exploitation. But, nevertheless, Ricardo comes quite close to the correct quantification of the price of labor, in fact, the value of labor. Distinguishing between the natural and market prices of labor, he believes that under the influence of supply and demand, the natural price of labor is reduced to the cost of a certain amount of living resources, necessary not only for the maintenance of the workers and the continuation of their kind, but also to a certain extent for development. Therefore, the natural price of labor is a value category.
According to Ricardo, the market price of labor fluctuates around the natural under the influence of the natural movement of the working population. If the market price of labor exceeds the natural price, the number of workers increases significantly, the supply of labor increases, at a certain stage increasing demand for it. Due to these circumstances, unemployment occurs, the market price of labor begins to fall. Its decline continues until the size of the working population begins to decline, and the supply of labor decreases in accordance with the demand for it. In this case, the market price of labor is reduced in relation to the natural. Thus, the interpretation of the natural price of labor by D. Ricardo is quite contradictory.
David Ricardo was the completion of bourgeois political economy precisely because the scientific truths revealed by him became increasingly socially dangerous for the political and economic positions of the ruling class.
2.3 The economic doctrine of T. Malthus
Thomas Robert Malthus (1766-1834) is a prominent representative of the classical political economy of England. The work of this scientist was formed mainly in the first quarter of the 19th century, but the results of his scientific research are valuable for modern economic theory.
A bright, unique contribution to economic science was made by the representative of the classical school Englishman T. Malthus. The treatise by T. Malthus, “An Experience on the Law of Population,” published in 1798, has made and makes such a powerful impression on the reading public that discussions on this work are ongoing. The range of assessments in these discussions is extremely wide: from "brilliant foresight" to "unscientific nonsense."
T. Malthus was not the first to write about demographic issues, but he was perhaps the first to try to propose a theory that describes the patterns of population change. As for his system of evidence and statistical illustrations, a lot of claims were made against them already in those days. In the XVIII-XIX centuries, T. Malthus's theory became known mainly due to the fact that its author first proposed a refutation of the widespread thesis that human society can be improved through social reform. For economic science, the T. Malthus treatise is valuable for those analytical conclusions that were subsequently used by other theorists of the classical and some other schools.
As we know, A. Smith proceeded from the fact that the material wealth of society is the ratio between the volume of consumer goods and the population. The founder of the classical school devoted his main attention to the study of the laws and conditions for the growth of the volume of production, but he practically did not consider questions connected with the laws governing the change in the population. This task was taken by T. Malthus.
From the point of view of T. Malthus, there is a contradiction between the "instinct of procreation" and the limited land suitable for agricultural production. Instincts make humanity multiply at a very high speed, "exponentially." In turn, agriculture, and only it produces the foodstuffs necessary for people, is capable of producing these products at a much lower rate, "in arithmetic progression." Consequently, any increase in food production will be sooner or later absorbed by the increase in population. Thus, the cause of poverty is the ratio of population growth rates to growth rates of wealth. Any attempt to improve living conditions through social reform is thereby nullified by an increasing mass of people.
T. Malthus connects the relatively low growth rates of food products with the action of the so-called law of diminishing soil fertility. The meaning of this law is that the number of land suitable for agricultural production is limited. The volume of production can grow only due to extensive factors, and each subsequent land plot is included in the economic turnover with a large number of costs, the natural fertility of each subsequent land plot is lower than the previous one, and therefore the total fertility rate of all land fund overall tends to decrease. Progress in agricultural technology is generally very slow and is not able to compensate for the decline in fertility.
Thus, endowing people with the ability to limitless reproduction, nature through economic processes imposes human constraints on the human race that regulate population growth. Among these constraints, T. Malthus singles out: moral constraints and poor health, which lead to a decrease in the birth rate, as well as vicious lives and poverty, which lead to an increase in mortality. The decline in fertility and the increase in mortality are ultimately determined by limited livelihoods.
From such a statement of the problem, in principle, completely different conclusions can be drawn. Some commentators and interpreters of T. Malthus saw in his theory a hate doctrine that justifies poverty and calls for war as a method of eliminating an excess population. Others believe that T. Malthus laid theoretical basis the policy of "family planning", which has been widely used in the last thirty years in many countries of the world. Himself T. Malthus only strongly emphasized only one thing - it is necessary for each person to take care of themselves and be fully responsible for their hindsight.
2.4 Economic doctrine of J. C. Mill
John Stuart Mill (1806-1873) is one of the finalists of classical political economy. John Stuart Mill is one of the finalists of classical political economy and "a recognized authority in academia whose research transcends the boundaries of the technical economy."
J.S. Mill published his first “Experiments” on Political Economy when he was 23 years old, i.e. in 1829. In 1843 his philosophical work “System of Logic” appeared, which brought him fame. The main work (in five books, as by A. Smith) under the title "Fundamentals of Political Economy and Some Aspects of Their Application to Social Philosophy" was published in 1848.
J.S. Mill adopted the Ricardian view of the subject of political economy, highlighting the "laws of production" and the "laws of distribution."
To the theory of value, J.S. Mill examined the concepts of “exchange value”, “consumer value”, “value” and some others, he draws attention to the fact that value (value) cannot increase for all goods at the same time, since value represents a relative concept.
Wealth, according to Mill, consists of goods with exchange value as a characteristic property. “A thing for which nothing can be obtained in return, no matter how useful or necessary it is, is not wealth ... For example, air, although it is an absolute necessity for a person, has no price on the market, since it can be obtained practically free of charge. " But as soon as the restriction becomes tangible, the thing immediately acquires exchange value. The monetary value of a product is its price.
The value of money is measured by the amount of goods for which they can be bought. “All things being equal, the value of money changes inversely with the amount of money: any increase in the amount decreases its value, and any decrease increases it in exactly the same proportion ... This is a specific property of money.” The significance of money in the economy we begin to understand only when the monetary mechanism fails.
Prices are set directly by competition, which arises because the buyer tries to buy cheaper, and sellers try to sell more. With free competition, the market price corresponds to the equality of supply and demand. On the contrary, “the monopolist may, at its discretion, charge any high price, so long as it does not exceed that which the consumer cannot or does not want to pay; but can’t do this, only by limiting the offer. "
In a long period of time, the price of a product cannot be lower than the cost of its production, since no one wants to make a loss. Therefore, a state of sustainable equilibrium between supply and demand "occurs only when the objects are exchanged for each other in proportion to their production costs."
Mill refers to capital as the accumulated stock of labor products arising from savings and existing “through its constant reproduction”. Savings themselves are understood as "abstinence from current consumption for future benefits." Therefore, savings grow along with the interest rate.
Production activity is limited by the size of capital. However, "every increase in capital carries out or may lead to a new expansion of production, and without a certain limit ... If there are people capable of work and food for their food, they can always be used in any production." This is one of the main points that distinguish classical economic science from later.
Mill admits, however, that other restrictions are inherent in capital development. One of them is a reduction in capital income, which he attributes to a drop in marginal productivity of capital. Thus, an increase in agricultural output "can never be achieved otherwise than by increasing labor costs in a proportion that increases the one in which agricultural output increases."
In general, when setting out the issue of profit, Mill seeks to adhere to the views of Ricardo. The emergence of an average rate of profit leads to the fact that profit becomes proportional to the capital used, and prices become proportional to costs. “So that the profit can be equal where the costs are equal, i.e. production costs, things must be exchanged for each other in proportion to the costs of their production: things whose production costs are the same should have the same value, because only in this way the same costs will bring the same income. ”
Mill analyzes the essence of money based on a simple quantitative theory of money and the theory of market interest.
Mill's work meant the completion of the formation of classical economic science, the beginning of which was laid by Adam Smith.
3CONCLUSION
The classical school of political economy is one of the mature areas of economic thought that left a deep mark in the history of economic doctrines. The economic ideas of the classical school have not lost their significance to this day. The classical trend originated in the 17th century and flourished in the 18th and early 19th centuries. The greatest merit of the classics is that they put labor at the center of economics and economic research as a creative force and value as the embodiment of value, thereby laying the foundation for the labor theory of value. The classical school has become a forerunner of the ideas of economic freedom, a liberal trend in the economy. Representatives of the classical school developed a scientific idea of \u200b\u200bsurplus value, profit, taxes, land rent. In the bowels of the classical school, in fact, economic science was born.
The main ideas of classical political economy are:
1. A person is considered only as an “economic person”, who has only one desire - the desire for his own benefit, to improve his position. Morality, culture, customs, etc. not taken into account.
2. All parties involved in an economic transaction are free and equal before the law, and in the sense of foresight and foresight.
3. Each economic entity is fully aware of prices, profits, wages and rents in any market, both now and in the future.
4. The market provides complete mobility of resources: labor and capital can instantly move to the right place.
5. The elasticity of the number of workers in wages is not less than one. In other words, any increase in wages leads to an increase in the number of labor, and any decrease in wages leads to a decrease in the number of labor.
6. The sole purpose of the capitalist is to maximize the return on capital.
7. In the labor market there is absolute flexibility in cash wages (its value is determined only by the ratio between supply and demand in the labor market).
8. The main factor in increasing wealth is the accumulation of capital.
9. The competition must be perfect, and the economy free from excessive state interference. In this case, the “invisible hand” of the market will ensure the optimal allocation of resources.
LISTUSEDLITERATURE
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3. Blaug M. Economic thought in retrospect. M .: "Case Ltd.", 1994.
4. Yadgarov Ya.S. History of Economic Thought. M., 2000.
5. Galbraith JK Economic theories and goals of society. M .: Progress, 1979.
6. Zhid Sh., Rist Sh. History of economic doctrines. M .: Economics, 1995.
7. Kondratiev ND Fav. Op. M .: Economics, 1993.
8. Negesi T. History of economic theory. - M .: Aspect - press, 1995.
1. The history of economic studies originates from the period of occurrence:plain
1) natural-economic ideology
2. A study of the history of economic doctrines reveals that economic science is inherent in: middle
2) unidirectional development
3. Studying the history of economic doctrines allows us to better understand in the development of economic science its: plain
3) past and present
4. The subject of studying the history of economic doctrines covers economic theories: plain
3) individual economists and schools of economic thought
5. The exponents of economic thought of the pre-market era idealized: plain
2) natural-economic relations
6. The final stage of the era of economic teachings of the pre-market economy was the stage: plain
1) mercantilism
7. The displacement of the previous stage or direction of economic thought by a new (alternative) stage or direction in the history of economic doctrines occurs: middle
3) even before the completion of the existence of a particular stage or direction
8. The stage of idealization of the principles of “pure” economic science took place in the era of economic doctrines: middle
2) unregulated market economy
9. Hammurabi laws regulated debt slavery in order to: middle
5) to prevent the destruction of the foundations of subsistence farming
10. Aristotle relates to the field of chrematistics: middle
4) usury and intermediary operations
11. In accordance with the economic views of Aristotle and F. Aquinas money – this is: plain
2) the result of an agreement between people
12. According to the concept of "fair price" F. Aquinas at the heart of the value (value) of the goods lies: middle
4) satratic and moral-ethical principle at the same time
1. At the stage of a priority role in the economic science of mercantilism, the concept dominated: plain
1) protectionism
2. The subject of study of mercantilism is: plain
3. The priority method of economic analysis of mercantilism
is an: plain
1) empirical method
4. Inin accordance with the economic views of mercantilists, wealth is: plain
1) gold and silver money
5. In accordance with the mercantilist concept, the source of monetary wealth is: middle
5) excess of export over import
6. The government engaged in damage to the national coin in the period: plain
1) early mercantilism
7. In accordance with the views of mercantilists, the macroeconomic balance is ensured in the country: plain
1) coordinating measures of the state
8. Colbertism – this is a characteristic of protectionist policies in the economy, as a result of which the capacity of the domestic market: plain
3) A. Montcretien
1. At the stage of priority role in the economic science of classical political economy, the concept dominated: plain
2) economic liberalism
2. Subject ofthe teachings of classical political economy are: plain
2) the scope of production (proposals)
3. In classical political economy, the priority method of economic analysis is: plain
2) causal method
4. Inin accordance with the economic views of representatives of classical political economy, wealth is:
3) money and goods having a material nature
5. According to classical political economy, money – this is: plain
3) a technical tool, a thing facilitating the exchange
6. According to classical political economy, wages as a worker’s income gravitate: middle
2) to a living wage
3) quantitative theory of money
8. W. Petty and P. Boisguillebert – the founders of the theory of value defined by: plain
1) labor costs (labor theory)
9. According to the classification proposed by F. Quesnay, farmers represent: plain
1) productive class
10. According to the teachings of F. Quesnay about the "pure product" the latter is created: middle
5) in agricultural production
12. A. Turgot considers labor to be the only source of all wealth: middle
2) the farmer (farmer)
13. According to A. Smith, capital invested adds a lot of value to actual wealth and income: middle
4) in agricultural production
14. The Invisible Hand by A. Smith – this is: complicated
2) the effect of objective economic laws
15. According to the methodological position of A. Smith, private interest: middle
2) stands above public
16. In the structure of trade in the first place A. Smith put: complicated
1) domestic trade
17. According to A. Smith, in every developed society, the value of goods is determined by: middle
3) the amount of income
18. A. Smith considers labor productive if applied:plain
2) in any branch of material production
19. A. Smith distinguishes the following parts in the capital structure: plain
2) fixed and working capital
20. The thesis “The fabulous dogma of Smith” arose at K. Marx in connection with the fact that A. Smith: complicated
3) identifies the principle of revealing the value of the “annual product of labor” and “the price of every commodity”
21. N.S. Mordvinov, being a follower of the economic doctrine of A. Smith, considers the source of the origin of wealth: middle
4) industry, trade and science at the same time
22. A.K. Storch, being a follower of the economic teachings of A. Smith, admits the productive nature of labor: middle
3) in tangible and intangible production
23. In accordance with the economic views of MM. Speransky's "gradual improvement of the public" involves the implementation of economic policy: middle
3) protectionism and economic liberalism at the same time
1. In determining the value of D. Ricardo adheres to: plain
1) labor theory
2. According to D. Ricardo, salary tends to decrease, as: middle
2) high fertility rates generate excess labor supply
1) as land income
2) the same as the farmer’s profit
3) as well as profits in the industrial sector
4) as an additional income of the farmer in excess of the average profit in
field of activity
5) as a “free gift of the earth”
4. The tendency of the rate of profit to decrease, according to D. Ricardo, is caused by the following reasons: complicated
2) a decrease in the relative level of “market labor prices”
3) an increase in the relative level of “market labor prices”
4) an increase in the high cost of land products due to its constant decline
fertility
5) population decline
6) increase in population
5. The basic tenets of the "law of markets" J.B. Sai are: complicated
1) demand creates an appropriate level of supply
2) the proposal creates the corresponding demand
3) money as the most important independent factor in the reproduction process
4) money is neutral
5) prices, wages and interest rates are completely flexible,
movable
6) government intervention in the economy is allowed
7) economic crises are impossible or their manifestation is always temporary and transitory
6. “Say Law” has exhausted its relevance with the emergence of economic doctrine: plain
4) J.M. Keynes
7. According to T. Malthus’s population theory, the main causes of poverty are: complicated
1) imperfection of social legislation
2) constantly high population growth rates
3) consistently low wages
4) excessively high rates of scientific and technological progress
5) "the law of diminishing soil fertility"
8. The population theory of T. Malthus from among the following authors was categorically rejected: complicated
1) D. Ricardo
2) S. Sismondi
3) P. Proudhon
5) J.S. Mill
6) C. Marx
7) A. Marshall
9. According to T. Malthus, “third parties” in the reproduction process manifest themselves as: complicated
1) the productive part of society
2) unproductive part of society
3) a factor contributing to the creation and implementation of public
product
4) a factor restraining the full use of capital
5) a factor preventing general overproduction
2) D. Ricardo
3) J.S. Mill
4) K. Marx
5) T. Malthus
1) change the laws of production
2) change the laws of distribution
3) limit the right of inheritance
4) to destroy wage labor through a cooperative productive association
5) to overthrow the system of private property
6) to socialize land rent with the help of land tax
7) improve the system of private property in order to participate in the income it brings to each member of the company
12. The only representative of classical political economy is characterized by the category of “capital” as a means of exploiting the worker and as self-increasing value: plain
4) K. Marx
13. Which of the following reasons cause, according to K. Marx, the tendency of the rate of profit to decrease: complicated
1) the transfer of capital from one occupation to another
2) an increase in the high cost of land products due to a decrease in its fertility
3) increase in the relative level of wages of workers
4) a decrease in the share of variable capital in the capital structure
5) capital accumulation, accompanied by an increase in the structure
capital shares of constant capital
14. Which of the following options of provisions is guided
K. Marx, assuming that surplus value is created: middle
1) labor, capital and land
2) unpaid labor of productive workers
3) constant capital
4) variable capital
15. The theory of reproduction by K. Marx substantiates such provisions as: complicated
1) the cyclical nature of economic development under capitalism
2) the non-cyclical nature of economic development under capitalism
3) differences between simple and extended types of reproduction
4) the validity of the doctrines of economic crises of under-consumption
5) the transient nature of economic crises under capitalism
16. A.I. Butovsky, as one of the Smithians of the post-manufacturing period, considers the determination of value possible on the basis of: middle
2) cost theory
17. I.V. Vernadsky, as one of the Smiths of the post-manufacturing period, considers the determination of value possible on the basis of: middle
1) labor theory
18. Being one of the opponents of the Marxist economic doctrine of PB Struve believes that Russia should become a country: plain
3) rich capitalist
1. Romantic economists put forward reformist concepts that substantiate the feasibility of priority development: plain
4) small commodity production
2. The reason for minimizing the wages of workers S. Sismondi believes: plain
3) the crowding out of labor by machines and mechanisms
3. Among the directly named P. Proudhon belong ideas about the feasibility: complicated
1) the leading role in the economy of public property
2) organizations of the banks of the people
3) the abolition of money and the creation of constitutional value
4) preferences of the functional method to the causal analysis
5) introduction of an interest-free loan
6) liquidation of state power
4. According to Utopian socialists, property must have priority in the economy: plain
3) nationwide
5. The historical school of Germany considers as a subject
economic analysis: plain
6. S.Yu. Witte, as a supporter of the methodology of the German historical school, substantiates the proposition that: plain
2) the public interest should be higher than the interest of an individual
1. Marginalism (marginal economic theory) is based on
research: plain
3) marginal economic values
2. The subject of the study of the subjective psychological direction of economic thought is: plain
1) scope of circulation (consumption)
3. The priority method of economic analysis of the subjective-psychological direction of economic thought is: plain
4) marginal utility theory
1. The subject of study of the neoclassical direction of economic thought is: plain
3) the scope of circulation and the scope of production at the same time
2. The priority method of economic analysis of the neoclassical direction of economic thought is: plain
3) functional method
3. The term A. Marshall "representative firm" describes a variety of firms: plain
3) medium
4. The cost of goods by A. Marshall is characterized on the basis of:
1) identify the intersection of supply and demand curves
3) J.B. Clark
6. The criterion for achieving general economic equilibrium, according to V. Pareto, should be considered: plain
1) measuring the correlation of preferences of specific individuals
7. In accordance with the economic views of N.Kh. Bunge cost is determined by: middle
3) supply and demand
8. In accordance with the economic views of M.I. Tugan-Baranovsky and V.K. Dmitrieva cost determination is possible based on: middle
3) synthesis of labor theory and marginal utility theory
1. At the stage of a priority role in the economic science of institutionalism, the concept dominated: plain
3) social control of society over the economy
2. As the subject of economic analysis, representatives of institutionalism put forward: plain
5) a combination of economic and non-economic factors
3. The priority research methods in institutional theory are: middle
1) causal
2) historical and economic
3) functional
4) empirical
5) logical abstraction
6) social psychology
4. The concept of “Veblen effect” characterizes the situation of the influence of consumer behavior on growth communication demand: plain
1) with an increased price level
1) the transition to the "industrial system"
6. According to J. Commons, the value is formed: plain
1) the legal agreement of the "collective institutions"
7. Of the below stages in the evolution of "capitalism" J. Commons distinguishes the following: middle
1) capitalism of free competition
2) money management
3) financial capitalism
4) credit facilities
5) administrative capitalism
8. Antitrust concepts of T. Veblen and J. Commons were first tested: middle
4) during the “new course” of F. Roosevelt
9. W.K. Mitchell is the founder of one of the trends of institutionalism, called: plain
2) market and statistical
10. Economic doctrine of UK Mitchell was the basis: plain
4) crisis-free cycle concepts
11. Market theories with imperfect competition have arisen: plain
1) after the global economic crisis of 1929-1933.
12. In the theory of monopolistic competition by E. Chamberlain, the main sign of “product differentiation” is the presence of one of the sellers of the goods of any significant attribute, which may be: middle
5) both real and imaginary
13. According to E. Chamberlin, monopolistic competition gives rise to the phenomenon of excess capacity, due to the formation of seller prices: middle
3) exceeding costs
14. In conditions of imperfect competition, according to J. Robinson, the size (capacity) of firms: plain
1) exceed the optimal level
1. From the following provisions, the basis of the research methodology
J.M. Keynes make up: complicated
1) the priority of microeconomic analysis
2) the priority of macroeconomic analysis
3) the concept of "effective demand"
4) adherence to the "law of the markets" J.B. Say
5) investment multiplier
6) propensity for liquidity
2. To stimulate consumer demand for investment, the state, according to J.M. Keynes, should actively contribute to the regulation of the rate of loan interest: plain
1) downward
3. In accordance with the "basic psychological law" J.M. Keynes's income growth rate of consumption growth: plain
5) increase, but not to the same extent as income
4. Neoliberalism, unlike Keynesianism, involves: complicated
government measures to invest unprofitable and low
cost-effective industries
2) liberalization of the economy
3) an increase in government orders, purchases and loans
4) free pricing
5) priority of private property
5. The term "social market economy" was first used: plain
3) A. Muller-Armak
6. The Freiburg School of Neoliberalism in the concept of social market economy adheres to the principles of: complicated
competition wherever possible; regulation - where necessary
automatic functioning of a “free market economy”
synthesis between free and “socially binding social
4) concentration of power and collectivism
5) social alignment through equitable distribution
7. The leader of the Chicago School of Neoliberalism M. Friedman, in his concept of state regulation of the economy, considers the following principles as fundamental: complicated
1) the priority of non-monetary factors
2) the priority of monetary factors
3) the stability of the "Phillips curve"
instability of the Phillips curve
stability of the growth rate of the amount of money, taking into account the "natural
unemployment rates "(ENB)
are: middle
1) J.M. Keynes
2) V.V. Leontiev
3) E. Chamberlin
4) P. Samuelson
5) M. Friedman
9. The main scientific achievement of the Russian Nobel laureate in economics L.V. Kantorovich is the development of: middle
1) linear programming models in the process of using resources