MT Project Paper
ECON103 Group Midterm Project Paper
1. Summarize and explain the essence of the key contributions to economic thought of each of the 4 Classical economists, Karl Marx and John Maynard Keynes. Adam Smith's key contributions to economic thought are; The Theory of Moral Sentiments and The Wealth of Nations. The Theory of Moral Sentiments was concerned with how human morality depends on sympathy between agent and spectator, or the individual and other members of society. Smith suggests that conscience arises from social relationship. His goal was to explain the source of mankind's ability to form moral judgments, in spite of man's natural inclinations towards self-interest. He proposes a theory of sympathy which means that observing others makes people aware of themselves and the morality of their own behavior. Smith used the term “an invisible hand” in The Wealth of Nations. His belief is that, when an individual pursues his self-interest, he indirectly promotes the good of society. Smith argued that self-interested competition the free market would benefit the society as a whole by keeping the prices low while still building in an incentive for a wide variety of goods and services. He also added that productive labor should be made more productive by deepening the division of labor. This means that under competition lower prices and thereby extended markets. John Stuart Mill's key contributions to economic thought are; The Theory of Liberty and Utilitarianism. His general idea on liberty showed that individuals are free to do what they want as long as he is not harming others. It is also acceptable if he harms himself but it is prevented if individuals did a serious harm to themselves that may also harm others and destroy property. We, individuals are intelligent enough to make decisions and choose any religion that we want. But government should intervene when it is for the protection of society. Mill's major contribution to utilitarianism is
1. Summarize and explain the essence of the key contributions to economic thought of each of the 4 Classical economists, Karl Marx and John Maynard Keynes. Adam Smith's key contributions to economic thought are; The Theory of Moral Sentiments and The Wealth of Nations. The Theory of Moral Sentiments was concerned with how human morality depends on sympathy between agent and spectator, or the individual and other members of society. Smith suggests that conscience arises from social relationship. His goal was to explain the source of mankind's ability to form moral judgments, in spite of man's natural inclinations towards self-interest. He proposes a theory of sympathy which means that observing others makes people aware of themselves and the morality of their own behavior. Smith used the term “an invisible hand” in The Wealth of Nations. His belief is that, when an individual pursues his self-interest, he indirectly promotes the good of society. Smith argued that self-interested competition the free market would benefit the society as a whole by keeping the prices low while still building in an incentive for a wide variety of goods and services. He also added that productive labor should be made more productive by deepening the division of labor. This means that under competition lower prices and thereby extended markets. John Stuart Mill's key contributions to economic thought are; The Theory of Liberty and Utilitarianism. His general idea on liberty showed that individuals are free to do what they want as long as he is not harming others. It is also acceptable if he harms himself but it is prevented if individuals did a serious harm to themselves that may also harm others and destroy property. We, individuals are intelligent enough to make decisions and choose any religion that we want. But government should intervene when it is for the protection of society. Mill's major contribution to utilitarianism is