Economic Theories and Influential Thinkers Quiz

Adam Smith is regarded as the father of modern economics for his foundational work in 'The Wealth of Nations'.

Classical economics advocates for minimal government intervention, emphasizing free markets and individual initiative.

Adam Smith introduced the concept of the 'invisible hand' to describe how self-interest can lead to economic prosperity.

Joseph Schumpeter is known for the theory of 'creative destruction,' describing how innovation disrupts and revitalizes markets.

Robert Lucas Jr. is known for his theory of 'rational expectations,' suggesting that people make predictions based on all available information.

John Maynard Keynes introduced the concept of 'liquidity preference,' emphasizing the demand for money based on liquidity.

Alfred Marshall proposed the concept of 'perfect competition,' defining ideal market conditions.

David Ricardo is known for the theory of 'capital accumulation,' emphasizing its role in economic growth.

David Ricardo developed the concept of 'comparative advantage,' highlighting the benefits of specialization in trade.

George Akerlof is known for his work on 'information asymmetry,' highlighting its impact on markets and decision-making.

Arthur Laffer is associated with the 'Laffer curve,' illustrating the relationship between tax rates and tax revenue.

Ronald Coase developed the 'theory of the firm,' focusing on the nature and boundaries of firms.

George Akerlof introduced the concept of 'efficiency wages,' relating higher wages to increased productivity.

A.W. Phillips is associated with the 'Phillips curve,' depicting the inverse relationship between unemployment and inflation.