What Happens When Economics Doesn’t Reflect the Real World?

Anwar Shaikh critiques neoclassical economics, arguing that perfect competition is a fantasy. He shares his journey in economics, motivated by the inadequacy of existing theories to explain real-world phenomena. Shaikh introduces the concept of 'real competition' and discusses consumer behavior using a stochastic approach. He emphasizes profitability as the core of capitalism and analyzes historical economic policies. Shaikh proposes a unified economic framework to better understand global issues like inequality and globalization.

What does Anwar Shaikh consider perfect competition to be?

• A historical fact

• A fantasy

• A minor issue

• A realistic model

Which economists does Shaikh draw ideas from for his framework?

• Schumpeter, Galbraith, and Stiglitz

• Friedman, Hayek, and Mises

• Becker, Vickrey, and Samuelson

• Smith, Ricardo, Marx, and Keynes

What term does Shaikh use to describe the competitive nature of firms?

• Oligopoly

• Perfect competition

• Monopoly

• Real competition

According to Shaikh, what is a fundamental principle of consumer behavior?

• Unlimited spending

• Emotional decision-making

• Stable sarcastic behavior

• Budget constraint

What motivates firms according to Shaikh's framework?

• Technological advancements

• Profitability

• Consumer demand

• Government regulations

What does Shaikh suggest is necessary for effective economic stimulus?

• Increasing taxes

• Reducing interest rates

• Cutting government spending

• More than just pumping money

How does Shaikh describe the core of capitalism?

• Innovation

• Government intervention

• Consumer satisfaction

• Profitability

What does Shaikh argue is a key factor in explaining inequality?

• Government policies

• Technological changes

• Cultural differences

• Balance between profits and wages

What does Shaikh believe about the use of mathematics in economic theory?

• It should be avoided

• It can cloak the content of a theory

• It is the most important aspect

• It is irrelevant

What does Shaikh emphasize about understanding economic frameworks?

• Consider the socialness of life

• Focus solely on equations

• Rely on traditional theories

• Ignore historical context