This presentation is all about the historical background of economics.

2. How does economics
affects your day-to-day
living?

3. What are the two
kinds of goods that
supply man’s needs
and wants?

4. What is economics?

13. Father of Modern
Economics
Laissez Faire – Let
Alone Policy – that the
government should not
interfere with the
activities of man
towards the free
market. They should
concentrate on
maintaining peace and
order in the country.

14. An Inquiry Into Nature
and Causes of Wealth of
Nations
Pointed out the
importance of
specialization in
achieving the
industrialization of the
economy.
Specialization is
concentrating in one
particular work according
to one’s skills and ability.

16. 1.He illustrated
the circular flow
of goods and
services in the
economy.

17. 2. The Father of Modern
Economics.

18. 3. Their ultimate
goal is to
accumulate gold and
silver.

19. 4. He viewed exchange
as a way to satisfy
individual and collective
wants.

20. 5. He introduced
“oeconomicus”
about Efficient
Management and
Leadership in a
household.

22.  Known for his brilliant ideas about
the effects of natural resources like
land in the development of the
economy.
 Law of Diminishing Marginal Returns
– the increasing number of people
will drive man to cultivate even the
idle lands to support his necessities
in life.
 Law of Comparative Advantage – the
principle that explained that a
country benefits more in producing
the products with less production
cost than any country.

23. He discussed the effects of
rapid increase in
population.
Malthusian Theory
An Essay on the Principle of
Population – it pointed out
that if population increases
rapidly than the supply of
food, it can cause famine
and will affect the
economic activities of man.

24.  The Law of Supply and Demand – the underlying principle of
Neoclassicists.
 The government plays a significant role in maintaining equilibrium in
the economy through public spending and keeping the balance
among demand, supply and the market prices.
 The Father of Macroeconomics
 Wrote the book “ General Theory of Employment, Interest and
Money.
 Father of Modern Theory of Employment

25. The Father of Communism
Shared the cause of poverty in the society
Poverty of proletariat or working society
is cause by abusive practices of the rich
capitalists that safeguard their own
selfish interests and their accumulation of
wealth.
All industries and other sources of wealth
should be nationalized to achieve
equality among the people.
Known as the advocate of communism.
He wrote “ Das Kapital” – a book that
contains the teachings of communism .