Which best describes capitalism?
Which best describes capitalism?
Capitalism is often thought of as an economic system in which private actors own and control property in accord with their interests, and demand and supply freely set prices in markets in a way that can serve the best interests of society. The essential feature of capitalism is the motive to make a profit.
Who came up with the theory behind capitalism?
Modern capitalist theory is traditionally traced to the 18th-century treatise An Inquiry into the Nature and Causes of the Wealth of Nations by Scottish political economist Adam Smith, and the origins of capitalism as an economic system can be placed in the 16th century.
What is Paul Krugman’s contribution to economics?
The Nobel Prize Committee stated that Krugman’s main contribution is his analysis of the effects of economies of scale, combined with the assumption that consumers appreciate diversity, on international trade and on the location of economic activity.
What did Paul Krugman win the Nobel Prize for?
Krugman was awarded the Nobel Memorial Prize in Economic Sciences (informally the Nobel Prize in Economics), the sole recipient for 2008. This prize includes an award of about $1.4 million and was given to Krugman for his work associated with New Trade Theory and the New Economic Geography.
How many books has Paul Krugman written?
Paul Krugman. Krugman is the author or editor of 27 books, including scholarly works, textbooks, and books for a more general audience, and has published over 200 scholarly articles in professional journals and edited volumes. He has also written several hundred columns on economic and political issues for The New York Times, Fortune and Slate.
What is the home market effect according to Krugman?
Krugman’s theory also took into account transportation costs, a key feature in producing the ” home market effect “, which would later feature in his work on the new economic geography. The home market effect “states that, ceteris paribus, the country with the larger demand for a good shall, at equilibrium,…
