- 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) On Liberty
B) The Wealth of Nations
C) Principles of Political Economy
D) Das Kapital
- 2. What economic system did Mill ultimately favor?
A) Feudalism
B) Complete communism
C) Pure laissez-faire capitalism
D) Modified capitalism with socialist elements
- 3. Mill's theory of value primarily builds upon which economist's work?
A) David Ricardo
B) Adam Smith
C) Thomas Malthus
D) Karl Marx
- 4. According to Mill, what determines the value of non-reproducible goods?
A) Production costs
B) Scarcity and demand
C) Government decree
D) Labor input
- 5. Mill's wage fund theory stated that wages are determined by:
A) Government minimum wage laws
B) International competition
C) Capital available for paying workers
D) Worker productivity alone
- 6. What did Mill propose to tax instead of land improvements?
A) International trade
B) Unearned increment in land value
C) All capital gains
D) Worker wages
- 7. Mill supported worker cooperatives because they would:
A) Increase international competition
B) Increase worker motivation and productivity
C) Reduce government intervention
D) Eliminate all private property
- 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) Currency exchange rates are set
B) Countries choose their trading partners
C) Terms of trade are determined between countries
D) Tariffs affect domestic prices
- 10. According to Mill, profits are primarily determined by:
A) Government policies
B) Entrepreneurial skill
C) Cost of labor
D) International competition
- 11. What did Mill see as the main benefit of private property?
A) Political power concentration
B) Incentive for productive use of resources
C) Social status differentiation
D) Wealth accumulation for its own sake
- 12. Mill believed that in the long run, prices are determined by:
A) Cost of production
B) International markets
C) Supply and demand alone
D) Government price controls
- 13. According to Mill, the ultimate purpose of political economy is to:
A) Maximize national wealth
B) Improve human well-being and freedom
C) Promote international trade
D) Increase government power
- 14. What economic system did Mill believe could potentially surpass capitalism?
A) Socialism
B) Feudalism
C) Mercantilism
D) Absolute monarchy
- 15. What is Mill's famous principle regarding government interference in individual liberty?
A) Harm principle
B) Divine right principle
C) Majority rule principle
D) Mercantile principle
- 16. How did Mill view the stationary state of economy?
A) Potentially desirable
B) Divinely mandated
C) Always catastrophic
D) Impossible to achieve
- 17. What did Mill advocate regarding inheritance?
A) Complete abolition
B) Government confiscation
C) Limits on inheritance
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) No taxation
C) Regressive taxation
D) Progressive taxation
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