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Questions: Jerry Z Muller The Mind And The Market

Essay Instructions:

Please answer the following questions .
1. The classical economists' flirtation with the labor theory of value (LTV) has been criticized as a dead-end street. What is the labor theory of value ? How does Ricardo use the labor theory of value to critique Smith's theory of value ? What are the chief criticisms of the LTV. The standard critique assumes that the sole point of the LTV was to explain relative prices. Would Sraffa agree ? Explain. What is the role of the LTV in classical economics, according to Sraffa ?
2. A presupposition of mainstream economics is that people come to the marketplace fully formed, and that economic arrangements affect neither the preferences not the character of those who use these arrangements. It is striking, looking back at the history of economic thought, how many of the thinkers we have looked at did not share this presupposition. They were concerned, that is, with the kinds of people that a market economy created or selected for, the way in which character and personality were shaped by commercial society, for good or ill. Indeed, Muller's book is full of evidence that this question was crucially important to early thinkers responding the advent of "commercial society." Find evidence in the readings we have done that this was a concern, both on the positive and the negative sides of the question. Do you believe that contemporary economics loses something by ignoring this sort of question ? Why or Why not ? 
3. Many of the thinkers we have looked at were concerned not so much with questions about the static allocation of scarce resources but with dynamic questions about the source of economic growth - and potential decline - over time. Write an essay in which you compare and contrast a range of thinkers we have looked at on this question. What role does Malthus' population theory play in the growth theories of the Classical economics ?
Thinkers that we looked at : Adam Smith, David Ricardo, Thomas Malthus, and Karl Marx.

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QUESTIONS: Jerry Z Muller the Mind and the Market
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1. The classical economists' flirtation with the labor theory of value (LTV) has been criticized as a dead-end street. What is the labor theory of value ? How does Ricardo use the labor theory of value to critique Smith's theory of value ? What are the chief criticisms of the LTV. The standard critique assumes that the sole point of the LTV was to explain relative prices. Would Sraffa agree ? Explain. What is the role of the LTV in classical economics, according to Sraffa ?
The labor theory of labor supposes that it is possible to measure the value of commodities objectively by considering the labor hours required in production. The price and goods then ought to reflect the labor hours required to produce the good.
Ricardo argued that labor was the source and measure of all value, but Smith claimed that labor is the only measure of all the value as it is inflexible compared to money that changes because of inflation. To Smith the division of labor created value resulting in increased capital, but Ricardo maintained that the value of a good depended on the labor and yet the use of machinery could be considered. The case for this is that there is competition in an economy such that there is equalization on the rates of return on capital, indicating that trade in goods do not solely depend on the labor...
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