Assignment
Write note in your own words, no citation.
There is no words limit.
Extra readings(If you feel the extra reading is useless , ignore them)
1.) Austrian School
2.) Capital Controversy.
Reading guide for the The Theory on Capital p. 302-312
• Take note on Clark
o Explain the substitution of capital and labor in production
o Explain figure 11.4, 11.5, 11.6
- Diminishing marginal productivity?
- Price of labor
- Price of capital, interest rate?
o Economics as exchange
- Explain the differences between profit vs interest rate
- Competitive equilibrium supposes to give each factor its worth eliminating the surplus?
- Why does competitive equilibrium need dei ex machina?
o Capital
- Explain the difficulties on how to measure physical quantity of capital?
- How did Clark make capital as object?
o Take note on Bohm-Bawerk
- Definition of capital
- How did Bohm-Bawerk separate capital out of interest?
- Time?
Textbook:- History of Economic Thought A CRITICAL PERSPECTIVE THIRD EDITION by E.K. Hunt and Mark Lautzenheiser