- 1. In 'Principles of Political Economy,' published in 1848, John Stuart Mill presents a comprehensive analysis of economics and its relationship with society, addressing themes that encompass the nature of wealth, production, and distribution. Mill builds upon the foundational work of earlier economists like Adam Smith and David Ricardo, yet he innovates by integrating ethical considerations into his analysis of economic systems. He argues for the importance of individual liberty and the need for a framework that balances economic efficiency with social justice. The text delves into concepts such as supply and demand, market equilibrium, and the role of government in regulating economic activity. Mill’s work also touches upon labor, capital, and the impact of industrialization, while advocating for the improvement of the working class's conditions. Furthermore, he explores the implications of population growth and the necessity of education and social reform in creating a more equitable society. Through a combination of practical advice and philosophical inquiry, 'Principles of Political Economy' remains a seminal text in understanding the complexities of economic theory and practice, emphasizing the interconnectedness of economic and social well-being.
What is John Stuart Mill's primary work on political economy?
A) Das Kapital
B) On Liberty
C) Principles of Political Economy
D) The Wealth of Nations
- 2. What economic system did Mill ultimately favor?
A) Feudalism
B) Complete communism
C) Modified capitalism with socialist elements
D) Pure laissez-faire capitalism
- 3. Mill's theory of value primarily builds upon which economist's work?
A) Thomas Malthus
B) Adam Smith
C) Karl Marx
D) David Ricardo
- 4. According to Mill, what determines the value of non-reproducible goods?
A) Government decree
B) Labor input
C) Production costs
D) Scarcity and demand
- 5. Mill's wage fund theory stated that wages are determined by:
A) International competition
B) Government minimum wage laws
C) Worker productivity alone
D) Capital available for paying workers
- 6. What did Mill propose to tax instead of land improvements?
A) International trade
B) All capital gains
C) Unearned increment in land value
D) Worker wages
- 7. Mill supported worker cooperatives because they would:
A) Eliminate all private property
B) Increase international competition
C) Reduce government intervention
D) Increase worker motivation and productivity
- 8. Mill's view on international trade emphasized:
A) Comparative advantage
B) Absolute self-sufficiency
C) Complete free trade without restrictions
D) Trade barriers for all goods
- 9. Mill's theory of international values explains how:
A) Countries choose their trading partners
B) Tariffs affect domestic prices
C) Terms of trade are determined between countries
D) Currency exchange rates are set
- 10. According to Mill, profits are primarily determined by:
A) Entrepreneurial skill
B) Cost of labor
C) Government policies
D) International competition
- 11. What did Mill see as the main benefit of private property?
A) Political power concentration
B) Social status differentiation
C) Incentive for productive use of resources
D) Wealth accumulation for its own sake
- 12. Mill believed that in the long run, prices are determined by:
A) International markets
B) Cost of production
C) Supply and demand alone
D) Government price controls
- 13. According to Mill, the ultimate purpose of political economy is to:
A) Increase government power
B) Maximize national wealth
C) Improve human well-being and freedom
D) Promote international trade
- 14. What economic system did Mill believe could potentially surpass capitalism?
A) Feudalism
B) Absolute monarchy
C) Socialism
D) Mercantilism
- 15. What is Mill's famous principle regarding government interference in individual liberty?
A) Majority rule principle
B) Divine right principle
C) Harm principle
D) Mercantile principle
- 16. How did Mill view the stationary state of economy?
A) Potentially desirable
B) Always catastrophic
C) Impossible to achieve
D) Divinely mandated
- 17. What did Mill advocate regarding inheritance?
A) Limits on inheritance
B) Government confiscation
C) Complete abolition
D) Unlimited inheritance rights
- 18. How did Mill view the role of competition?
A) The only economic law
B) Generally beneficial but not absolute
C) Irrelevant to economics
D) Always harmful
- 19. What was Mill's position on taxation?
A) Flat tax only
B) Regressive taxation
C) Progressive taxation
D) No taxation
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