ECON 19 Chapter Notes - Chapter 10: Classical Liberalism, Perfect Competition, Diminishing Returns
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1834) argued against economist which believed in limitless improvement of society. Malthus placed the longer-term stability of the economy above short-term expediency and thought that the dangers of population growth would preclude endless progress towards a utopian society. French economist who became most famous for the say law , stating that. He had classical liberal views, and argued for free trade. 1823) ricardo demonstrated the possibilities of using the abstract method of reasoning to formulate economic theories. Ricardo"s theorizing attracted a band of a scholars, corroborating, amending and extending his theories. His most important topics can be summarized to: 1850) von th nen was an important contributor to the ideas of profit maximization and marginal productivity. One important insight was the idea of diminishing returns, i. e. how marginal productivity varies with factor inputs. The importance of going from one factor to two factors should not be underrated, this was the major contribution by von.
