HET Classical Economics Quiz

Who is considered the founder of classical economics?

• David Ricardo

• Jeremy Bentham

• Adam Smith

• John Stuart Mill

What concept is David Ricardo most associated with?

• The Invisible Hand

• Utilitarianism

• Comparative Advantage

• Hedonic Calculus

According to Ricardo's Iron Law of Wages, wages tend to stabilize at a level that:

• Ensures worker luxury

• Provides workers with more than they need

• Keeps wages just enough for subsistence

• Continues increasing over time

What was Ricardo's theory on income distribution?

• It categorizes income as wages, rent, and profits.

• It disregards the role of land in income distribution.

• It focuses solely on laborers.

• It is based on demand and supply alone.

What is the key difference between Ricardo's and Adam Smith's theories of value?

• Smith focused only on demand

• Ricardo emphasized labor as the primary determinant of value in the long term

• Ricardo ignored labor costs

• Smith believed value was driven only by scarcity

Which theory argues that the government should avoid intervening in markets, according to classical economists like Ricardo?

• Keynesian Economics

• Laissez-faire

• Marxism

• Monetarism

What economic principle did Ricardo introduce to explain why countries should engage in international trade?

• Hedonic Calculus

• Iron Law of Wages

• Theory of Comparative Advantage

• Law of Supply and Demand

Jeremy Bentham is best known for founding which philosophical theory?

• Socialism

• Marxism

• Utilitarianism

• Classical Economics

What does Bentham's principle of utility advocate?

• Maximizing individual freedom

• Maximizing pleasure and minimizing pain

• Reducing government intervention

• Equal wealth distribution

What did Jeremy Bentham propose through his 'hedonic calculus'?

• A method to measure individual freedom

• A way to determine income distribution

• A method to quantify pleasure and pain

• A formula for calculating wages