Economists

Adam Smith
Adam Smith FRSA ( c. 16 June [O.S. c. 5
June] 1723 – 17 July 1790) was a Scottish
economist, philosopher as well as a
moral philosopher, a pioneer of political
economy, and a key figure during the
Scottish Enlightenment, also known as
''The Father of Economics'' or ''The
Father of Capitalism''.
Adam Smith
• Laissez-faire, (French: “allow to do”) policy of
minimum governmental interference in the
economic affairs of individuals and society. ...
The policy of laissez-faire received strong
support in classical economics as it developed
in Great Britain under the influence of the
philosopher and economist Adam Smith.
 John Maynard Keynes
born June 5, 1883, Cambridge,
Cambridgeshire, England—died April 21, 1946,
Firle, Sussex), English economist, journalist,
and financier, best known for his economic
theories (Keynesian economics) on the causes
of prolonged unemployment.
• Unemplyment due to the interplay of demand
and supply.
• Supply of work is greater than demand of
work then the salary/wage is low.
• Demand of work is greater than supply of
work then the salary/wage is high.
John Maynard Keynes
 David Ricardo
• Comparative advantage, economic theory,
first developed by 19th-century British
economist David Ricardo, that attributed the
cause and benefits of international trade to
the differences in the relative opportunity
costs (costs in terms of other goods given up)
of producing the same commodities among
countries
• Comparative Advantage, compare what is
most advantage to produce. Like the example
below. (hypothetical example)
PHILIPPINES JAPAN

rice computer
Income in rice: P10 M Income in computer: P10 M
Expenditure in rice: P1M Expenditure in computer: P1M

Income in computer: P1M Income in rice: P1M

Expenditure in computer: P10M Expenditure in rice: P10M
• Analyzing the concept given above, it states
that it is more advantagious for the
Philippines to produce rice than computer,
and also with Japan, it is better to produce
computer than rice. With this, stick in
producing what you produce best rather than
spending so much money in producing a
certain product that you are not gaining. That
is the concept of comparative advantage.
With this we can conclude that we can have
exchange product to other country rather
than insisting on what you are not best.
 Who Was Karl Marx?

• Karl Marx (1818-1883) was a philosopher, author,

social theorist, and an economist. He is famous
for his theories about capitalism and
communism. Marx, in conjunction with Friedrich
Engels, published The Communist Manifesto in
1848; later in life, he wrote Das Kapital (the first
volume was published in Berlin in 1867; the
second and third volumes were published
posthumously in 1885 and 1894, respectively),
which discussed the labor theory of value.
• Communism is an economic system where
there is more government role rather than
private individuals. Government decides all
basic economic problems.
• Labor capital theory speaks of what determines
the price of a product. According to Karl Marx it
is the amount of labor put in a good/product.
• Communist Manifesto and Das Kapital simply
emphasizing the importance of laborers.
• Marx is advocating a classless society where
everyone is equal.