FAQs on Chs. 8-9 of Backhouse – History and Theory in Europe, American Economics to 1939
- How does Schumpeter’s view of the business cycle differ from that of Marx? Extra credit (the answer is not in Backhouse): Can either view be used to predict or forecast the business cycle?
- Explain Schumpeter’s idea of “creative destruction.” [Hint: Try a source other than Backhouse.]
- Explain Walras’ idea of tatonnement.
- Carl Menger proposed two doctrines that eventually became the foundations of Austrian economics. What are these doctrines?
- What is the foundation of Marshall’s economics? Discuss the time periods he applied to market transactions.
- State the theory of income distribution proposed by John Bates Clark?
- How did Clark view the effect of technological innovation on an economy?
- What term did Veblen use for “habits of thought”?
- Who coined the term “neoclassical”? What does it mean?
- Who contributed the theory of monopolistic competition? What does this theory say?
- Schumpeter disagreed with Karl Marx on how capitalism would break down. How did these two economists differ? [Note: Refer to the chapter on classical political economy for Marx’s views on capitalism.]