1.
In 1776 the first modern work on economics was published. In it we find among
many others the concepts of invisible hand and division of labour.
(a)
What is the complete title of this book?
Ans:
An Inquiry into the Nature and Causes of the Wealth of Nations
(b)
Name the author.
Ans:
Adam
Smith
(c) What is the nationality of the
author?
Ans:
Scottish
2.
(a) Which famous economist is the
author of the book "On the Principles of Political
Economy and Taxation"?
Ans:
David Ricardo_
(b)
Where was he born?
Ans:
London
(c)
Name the principle / concept of trade which he developed in this book.
Ans:
Comparative cost advantage
(David
Ricardo, published "On the Principles of Political Economy and
Taxation" in 1817. In it he develops the idea that nations should produce
what they are best at compared to other goods. From this specialization, along
with freer trade, nations can increase the wealth of its producers and make
goods more inexpensive for the consumer)
3.
Who wrote the work "Das Kapital"?
Ans:
Karl Marx
(The first volume was published in
1867. Marx's collaborator Friedrich Engels edited and released Volumes 2 &
3 after Marx's death.)
4.
Who wrote the theory that International trade was zero sum game, therefore any
gains in trade by one country would come at the expense of another?
Ans:
Jean-Baptiste Colbert. Colbert was economic adviser for Louis XIV. During his
tenure, France practiced a specific brand of mercantilism named Colbertism.
5.
(a)
Name the economists who developed the model of the Unholy Trinity?
Ans:
Robert Mundell and Marcus Fleming
(b)
What does Unholy Trinity refer to?
Ans
: you cannot have a
fixed exchange rate, capital restrictions and an independent monetary policy in
an economy
(c)
Why was this theory developed?
Ans:
The model was developed to explain how a small open economy would react to the
world economy.
6.
(a) According to the Hecksher-Ohlin model,
what are the determinants of comparative advantage for different nations?
Ans:
(a) factors of production
Eli
Heckscher and Bertil Ohlin stated that the relative endowments of individual
factors of production (land, labor and capital) determined what a nation was
good at making. (e.g. A country like China with large endowments of labor would
have a comparative advantage in goods that needed large amounts of labor
input.)
(b)
What was the nationality of Heckscher and Ohlin?
Ans: Eli Heckscher: Swedish; Bertil Ohlin: Swedish (was Heckscher’s student)
7.
(a) Name the economists who wrote
the theorem that as the price of a good rises the
return on the factor of production most heavily invested in the good's
production will also rise?
Ans:
Wolfgang Stolper and Paul Samuelson
(b)
In which year was the theorem published?
Ans:
1941
(c)
From which model was the theorem derived?
Ans:
Stolper-Samuelson theorem derived their theorem from the Hecksher-Ohlin model.
They predicted that holders of the abundant factor of production would be the
most pro-free trade as they would receive larger returns on their input.
8.
(a) Name the book which was
published in 1936 which theorized that to
achieve "full employment" of labor and capital, government should
spend even to the extent of a budget
deficit, so as to increase the "aggregate demand" on goods and
services.
Ans:"The
General Theory of Employment, Interest, and Money"
(b)
Who was the author of this book?
Ans:
John Maynard Keynes
9.
Which economist is credited with influencing Ronald Reagan and Margaret
Thatcher with his book "The Road to Serfdom"?
Ans:
Friedrich Hayek
In
his 1944 work, Hayek argued that any sort of "planning" by the
government in economics will eventually lead to the rule of the few, those who
do the planning, over the many, who eventually become nothing more than serfs
to the few.
10.
(a) Who wrote the book "Capitalism
and Freedom"?
Ans:
Milton Friedman
(b)
What is the main argument of this book?
Ans:
Milton Friedman states that the government, despite good intentions, often does
more harm than good upon entering the economic arena, and therefore should stay
out of it whenever possible.
Top scorers: In first place Arnold D'Sa (20 1/2), FYBCom,
In second place Elton Fernandes (18), FYBCom and
A tie at the third place with 16 1/2; Rishika and Samantha from FYBCom,
and Chong and Warren from FYBA.
From TYBA THE INTREPID TRIO, Fatema and Marc with 20, Ibrat with 17.
CONGRATULATIONS TO THE TOP SCORERS
AND
EVERYONE FOR YOUR PARTICIPATION
