Theories of Economics – Teacher Key (Two-Page Layout)

Front

What is the main idea of the Classical theory in economics?

Back

Invisible Hand; laissez-faire; self-interest creates order.

Front

Which key term or example is associated with the Classical theory?

Back

Comparative Advantage (Ricardo).

Front

According to the Classical theory, what disrupts markets?

Back

Gov't interference disrupts markets.

Front

What is the main idea of the Marxian theory in economics? Options: Labor Theory of Value; surplus value; exploitation of workers.; Market equilibrium and invisible hand.; Utility maximization and consumer choice.; Monetary policy and inflation targeting.

Back

Labor Theory of Value; surplus value; exploitation of workers.

Front

Which key term or example is associated with the Marxian theory? Options: Historical Materialism; capitalism → socialism → communism., Social Darwinism; survival of the fittest., Utilitarianism; greatest happiness principle., Behaviorism; stimulus-response associations.

Back

Historical Materialism; capitalism → socialism → communism.

Front

According to the Marxian theory, what leads to revolution? Options: Capitalism as a pressure cooker leading to revolution., Feudalism as a stabilizing force., Democracy as a means to avoid conflict., Socialism as the end of class struggle.

Back

Capitalism as a pressure cooker leading to revolution.

Front

What is the main idea of Game Theory in economics?

Back

Strategic choices depend on others’ choices.

Front

Which key term or example is associated with Game Theory? Options: Prisoner’s Dilemma, Nash Equilibrium.; Supply and Demand, Market Equilibrium.; Photosynthesis, Cellular Respiration.; Plate Tectonics, Continental Drift.

Back

Prisoner’s Dilemma, Nash Equilibrium.

Front

What does Game Theory help explain?

Back

Explains arms races, price wars, climate change.

Front

What is the main idea of the Neoclassical theory in economics? Options: Marginalism; diminishing utility; rational actors.; Government intervention; planned economies; collective ownership.; Historical materialism; class struggle; surplus value.; Technological innovation; creative destruction; entrepreneurship.

Back

Marginalism; diminishing utility; rational actors.