ECONOMIC

Microeconomics

THEORY
THEORY OF MONEY

• Theory of Money - according to

Plato, money is used as a medium of
exchange in buying goods and
services. During his time people
were using precious stone such as
gold, silver, and copper in
exchanging goods and services.

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CONSULTANTS
THEORY OF MARKET

• Theory of Market - according to

Plato market is a place where
income and employment take place.
It requires administrative control to
eliminate usury, profit and interest.

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CONSULTANTS
FAIRNESS AND EXCHANGE

• Fairness and Exchange - Aristotle

focus on personal ethics led him to
devise a notion of fairness that could
be applied to exchange.The crucial
element he suggested, wqs equality
of proportion.

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CONSULTANTS
MONOPOLY

• Monopoly - was also suggested by

Aristotle that one possible cause of
unfair exchange. The recognition of
the potential injustices caused by a
monopoly power

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CONSULTANTS
USE VALUE AND EXCHANGE VALUE

• Use Value and Exchange Value -

Aristotles most important
contribution was to initiate the study
of value. Use Value relates to a
good`s intrinsic characteristics,
whereas Exchange Value relates to
how much the good can fetch in
return for other goods.

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CONSULTANTS
CONTEMPORARY RELEVANCE

• Contemporary Relevance - Alfred

Marshall devised a model to merge
the two types of value.

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CONSULTANTS
ESTATE MANAGEMENT

• Estate Management – means

household management which the
word economics was derived
according to Xenophon. The Greek`s
emphasis on the human element in
production, efficient management
translated into effective leadership.

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CONSULTANTS
JUST PRICE

• Just Price - Thomas Aquinas made

this concept of price; he attempted to
measure the conditions of fair trade.

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CONSULTANTS
WEALTH OF NATIONS

• Wealth of Nations – by Adam Smith

which established economics as an
autonomous subject and launched
the economic doctrine of free
enterprises.

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CONSULTANTS
THEORY OF MORAL SENTIMENTS

• Theory of Moral Sentiments - by

Adam Smith was about those
standards as ethical conduct that
holds society together, with
emphasis on the general harmony of
human activities under a beneficent
providence.

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CONSULTANTS
OTHER THEORIES OF ADAM SMITH ARE:

• Mercantilism; Capitalism; Laissez Faire;

Emergence of Capital; Free Trade; Liberalism;
Nation Wealth Individualism; Subsistence
Theory of Wages; Taxation

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CONSULTANTS
THANK YOU

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