ANCIENT ECO.

IDEAS
a.Plato-to him agriculture is THE ECO. LAISSEZ FAIRE THEORY
very important. THE CLASSICAL THEORIES
DOCTRINE OF - It connotes the liberty of
b.Aristotle-not in favor of too - Free market mechanism could
MERCANTILISM freedom. Just let the forces
much wealth, usury & trade. provide more benefits to
- A wealthy nation of the market interact with
c.Xenophone-consider the individuals and society than an
was considered one another.
agriculture as the basis of economy run by the government.
powerful and
wealth. prestigious. THEORY OF POPULATION
- Population growth is the
WEALTH CAME root cause of the problem of THEORY OF COMPARATIVE
FROM THE LAND society. ADVANTAGE
- The real wealth of - Nation should export the
any nation are in the goods which has greatest
MEDIEVALECONOMIC
products of advantage while export the one
THOUGHTS agriculture and nit with greatest disadvantage.
- agriculture was the money in the form of
source of livelihood gold and silver. THEORY ON PROGRESS &
while merchant class
became wealthy and
OF POVERTY
- Book made by Henry George, he MODERN THEORY OF
powerful. ECONOM concluded that rent is the root EMPLOYMENT
cause of poverty and it’s increased - The main point of the theory is
PRODUCTION IS THE IC is due to population growth that the cause of unemployment
REAL WEALTH
- Only source of DEVELOP is high wages.

T
wealth is production
MENT
EN
PHYSIOCRACY-RULE OF

PM

UES
through labor and EL
NATURE OD LO

VAL
KEYNESIAN THEORY OF
VE
- Stressed the resources H M
DE

WT INNOVATION THEORY
AN
EMPLOYMENT
IC

KEY TO PROGRESS
importance of R
UM
OM

EG - Employment determines the - Joseph Schumpeter the

agriculture and farmers M
N

FH

SO author of the theory

CO

necessity of equating the

NO

are the backbone of

FE

aggregate demand for goods. emphasizes on the role of the

SO

1.Ricardian Model
TIO

the economy.
OR

–key factor is land innovator in economic

MO
CT

development.
FA

2. The Harrod-Domar
PRO

Model
- The progress of
- Key factor is
the nation is great - Wealth is
physical capital
in part to the measured - Increase in rent and THEORY OF KARL MAX
3. Kaldor Model
-key factor is C
development of
the productive
in terms of value of land should - Emphasizing that labor must
technology human be taken by the he socially necessary.
force. government in the
welfare
form of state tax.