1. Activity 2.
Complete the retrieval chart below by providing the correct information about the
philosophers who laid down the foundation of Economics as a discipline. Upload your output in
our CG for evaluation.
RETIREVAL CHART
PHILOSOPHER ECONOMIC THEORY RELEVANCE /
IMPORTANCE
Adam Smith Laissez-Faire;
The leadership style meant
allowing industry to be free
of government restriction,
especially restrictions in the
form of tariffs and
government monopolies.
It is important because the
proponents of the theory of
laissez faire are the driving
force behind free trade and
the world trade organization.
David Ricardo Comparative Advantage
Theory
The importance of this theory
lies on Ricardo’s thought of it
where a country boosts its
economic growth the most by
focusing on the industry in
which it has the most
substantial comparative
advantage. This is practiced
by a lot of countries where
they produce a good or
service for a lower
opportunity cost.
Thomas Malthus Malthusian Theory of
Population;
The theory states that
“population growth will
always tend to outrun the
food supply and that
betterment of humankind is
impossible without strict
limits on reproduction.”
This theory looks very much
relevant today, as the
population of the world has
reached its greatest number
7.8 billion. Due to increased
economic prosperity, most of
the people are not following
population control measures.
On the bright side, some of
the developed countries like
China has taken into account
of this theory and has
regulations so as to control
the overpopulation in their
country.
2. Karl Marx Labor Theory of Value;
This theory stated that the
value of a produced economic
good can be measured
objectively by the average
number of labour-hours
required to produce it.
Labor theory was dominant in
the 18th and 19th centuries
but later was taken over by
the subjectivist revolution. It
was important because it was
more related to the hardship
faced by the labor and how it
drew attention towards them.
It was mainly implemented to
save laborers from getting
cheated by the capitalists.
Marx implemented this
theory to understand more
about capitalism rather than
about economic value.
John Maynard Keynes Keynesian economics;
Among other beliefs, Keynes
held that governments should
increase spending and lower
taxes when faced with a
recession, in order to create
jobs and boost consumer
buying power.
The intervention of
government in economic
processes is an important part
of the Keynesian theory since
it battled unemployment,
underemployment, and low
economic demand.
