- 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) Complete communism
B) Pure laissez-faire capitalism
C) Feudalism
D) Modified capitalism with socialist elements
- 3. Mill's theory of value primarily builds upon which economist's work?
A) Karl Marx
B) David Ricardo
C) Adam Smith
D) Thomas Malthus
- 4. According to Mill, what determines the value of non-reproducible goods?
A) Scarcity and demand
B) Production costs
C) Labor input
D) Government decree
- 5. Mill's wage fund theory stated that wages are determined by:
A) Government minimum wage laws
B) International competition
C) Worker productivity alone
D) Capital available for paying workers
- 6. What did Mill propose to tax instead of land improvements?
A) Unearned increment in land value
B) International trade
C) Worker wages
D) All capital gains
- 7. Mill supported worker cooperatives because they would:
A) Increase worker motivation and productivity
B) Reduce government intervention
C) Increase international competition
D) Eliminate all private property
- 8. Mill's view on international trade emphasized:
A) Absolute self-sufficiency
B) Trade barriers for all goods
C) Comparative advantage
D) Complete free trade without restrictions
- 9. Mill's theory of international values explains how:
A) Countries choose their trading partners
B) Currency exchange rates are set
C) Tariffs affect domestic prices
D) Terms of trade are determined between countries
- 10. According to Mill, profits are primarily determined by:
A) Cost of labor
B) International competition
C) Government policies
D) Entrepreneurial skill
- 11. What did Mill see as the main benefit of private property?
A) Social status differentiation
B) Wealth accumulation for its own sake
C) Incentive for productive use of resources
D) Political power concentration
- 12. Mill believed that in the long run, prices are determined by:
A) International markets
B) Supply and demand alone
C) Cost of production
D) Government price controls
- 13. According to Mill, the ultimate purpose of political economy is to:
A) Increase government power
B) Improve human well-being and freedom
C) Promote international trade
D) Maximize national wealth
- 14. What economic system did Mill believe could potentially surpass capitalism?
A) Absolute monarchy
B) Feudalism
C) Mercantilism
D) Socialism
- 15. What is Mill's famous principle regarding government interference in individual liberty?
A) Majority rule principle
B) Divine right principle
C) Mercantile principle
D) Harm principle
- 16. How did Mill view the stationary state of economy?
A) Divinely mandated
B) Impossible to achieve
C) Always catastrophic
D) Potentially desirable
- 17. What did Mill advocate regarding inheritance?
A) Unlimited inheritance rights
B) Limits on inheritance
C) Government confiscation
D) Complete abolition
- 18. How did Mill view the role of competition?
A) Generally beneficial but not absolute
B) Irrelevant to economics
C) The only economic law
D) Always harmful
- 19. What was Mill's position on taxation?
A) No taxation
B) Flat tax only
C) Regressive taxation
D) Progressive taxation
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