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Flashcards in Economic perspectives Deck (6)
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1
Q

Name one economist who believes in the free market perspective?

A

Adam Smith

Milton Friedman

2
Q

What is the key ideas of the interventionist perspective?

A
  • individuals can not be self reliant
  • market forces are important in the allocation of resources.
  • individuals unemployed because insufficient demand for labour.
  • government reduce employment by raising the level of aggregate expenditure.
3
Q

Name one person who believed in the interventionist perspective?

A

John Maynard Keynes

4
Q

What is the key ideas of the Marxist perspective?

A
  • Capitalist system prone to recurrent crises due to certain internal contradictions.
  • government policies soften adverse consequences.
  • long run economic crises only overcome by complete change in the system
5
Q

Who believe in the Marxist perspective?

A

Karl Marx

6
Q

What is the key ideas of free market perspective?

A
  • Individuals are rational, well informed and know their best interests.
  • unemployed usually because not willing to work for wage rate determined by market forces.
  • state should play limited role in economy.
  • market forces are the best way to allocate resources.
  • organisations like trade unions distort the operation of the labour market.