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Assignment
Write note in your own words, no citation.
There is no words limit.
Extra readings(If you feel the extra reading is useless , ignore them)
1.) Austrian School
2.) Capital Controversy.
Reading guide for the The Theory on Capital p. 302-312
• Take note on Clarko Explain the substitution of capital and labor in productiono Explain figure 11.4, 11.5, 11.6- Diminishing marginal productivity?- Price of labor- Price of capital, interest rate?o Economics as exchange- Explain the differences between profit vs interest rate- Competitive equilibrium supposes to give each factor its worth eliminating the surplus?- Why does competitive equilibrium need dei ex machina?o Capital- Explain the difficulties on how to measure physical quantity of capital?- How did Clark make capital as object?o Take note on Bohm-Bawerk- Definition of capital- How did Bohm-Bawerk separate capital out of interest?- Time?
Textbook:- History of Economic Thought A CRITICAL PERSPECTIVE THIRD EDITION by E.K. Hunt and Mark Lautzenheiser
Verified Expert
Clark's conceptions on the labor and the capital as well the conceptions makes the major theme of discussion. Also, the definition of the terms of the capital and other elements like competitive equilibrium makes up the major part of the discussion. Also, there is discussion presented about the Bohm Bowereck conception related with the capital, time and interest rates.
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