History Of Economic Thought

(1 )In the article of Allen et al . The Foundations of Free Enterp come up the leash types of economical system were discussed . In a traditional economic system , the allocation of resources is based on social custom , culture , and to rough extent , religious traditions . The dissemination of the fruits of achievement is dictated by traditional criteria such as sequence , sex , and other individual qualities that are not fundamentally related to personal productivity . Primitive , agrarian , and less-developed societies loosely fall on this category . Many traditional economies progressed into a market economic system , wherein the allocation of resources is controlled by hush-hush individuals and businesses . The individuals make independent decisions that reflect their best interest , modify the market demand , product supply , the monetary value of products , and the kinds of goods and service produced Business competition could be tight , causing some businesses to close down and unemployment to rise . Meanwhile , the government has single minimal control over the individual and business decisions , engaged only when needed . This often results in unequal distribution of resources , which causes poverty to emerge . Conversely , in a verify or authoritative economic system , the allocation of resources is enjoin by the government . The government operates all the industries determines what goods and services to be produced , how they will be to produced , how they will be divided among the peck , and decides how to utilize the talents and skills of its workers . Hence , equal distribution of resources is enforced at the expense of individual freedom (2 )The mensuration Theory of notes (QTM ) was developed during the 16th century in an attempt to explicate why gold and silver inflow into the U .S . and atomic number 63 caused the price levels to increase .

Schenk , in his article on gold , reports that after minting the large amounts of gold and silver from the Aztec and Incan empires which were brought ass to Spain by the conquistadors , the amount of bullion in circulation went up The price levels , at the same time , gradually started their slow century-long rise . Economists such as Henry Thornton were led to assume that much money equals more inflation and an increase in money supply does not necessarily mean an increase in economic output (cited in the article of Heakal on What is the Quantity Theory of Money . Thus , a direct affinity was established between the quantity of money in an thriftiness and the price levels of goods and services . For instance , when the amount of money in circulation doubles , price levels in any case double which causes inflation , i .e , the rate at which the price level escalates . This means that the consumer pays double as much for the same amount of the good or service (3 )Christianity taught faith in reason as the superlative gift of God to man . This stimulated the pursuit of light and democratic practice which gave rise to capitalism . Christian theologians also theorized about the nature of equality and individual rights , which is a ingest of capitalism . Christianity also fostered actual progress in terms...If you require to get a full essay, order it on our website: Ordercustompaper.com

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