ECO428H1 Chapter Notes - Chapter 2: Just Price, Scholasticism, Opportunity Cost
Document Summary
Embraced aristotle"s deductive method but not his empiricism when his works were reintroduced into europe in 12th century. Lived in period when feudal hierarchy coexisted with growing commercial class, especially in fortified towns. Believed natural law was imposed by nature but argued natural law varied in practice due to historical circumstances and social expedience. Contrast to aristotle who thought natural law immutable. Argued property was not against human law but was a human invention: a. b. c. People take better care of own property than communal property. Incentive greater if end is for one"s own gain. Better social order if disputes don"t occur over possessions in common. Roman law of laesio enormis (excessive violation) is extended into medieval law. Demand compensation for prices either 50% greater or 50% less than normal price. Recognizes difference in price in individual transactions and price typical of commodity. Distinction between price in market and in value.
