1. Is there a difference between Aristotle's concept of a just price and Adam Smith's natural price? Ifyes, what is the difference?

2. Is there a difference between Aristotle's simple, two party exchange, and Adam Smith's marketexchange? if yes, what is the difference?

3. Let V = present value, p represent a periodic payment, and r the rate of return on a comparable, alternate asset. Why does V =????give the present value of a perpetuity?

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4. Suppose a unit of land provides a net product that continues forever. If a tax is imposed on net product, what will happen to the value of land to theproprietor?

5. Why did the Physiocrats consider a tax on net product to be the same as government taking partial ownership of land?

6. What is thetableau economique?

7. What three classes did the Physiocrats name and how are these classes related to thetableau

economique?

8. Adam Smith considered some labour to be "productive." What, according to Smith, caused labour tobe productive?

9. Adam Smith considered some labour to be "unproductive." What, according to Smith, caused labourto be unproductive?

10. What is the wages fund and how is the wages fund related to your answers to questions (8) and (9)? 11. What is the wages fund?

12. What are the two circumstances Smith said would influence the wealth of a nation? How do they influence the wealth of a nation?

13. Adam Smith stated that specialization and division of labour caused three effects? What are these three effects?

14. Does Adam Smith say a market is a place of competition or cooperation or both? Explain.

15. What example did Adam Smith use to illustrate the division of labour?

16. How many distinct operations did Adam Smith claim can be identified in the manufacture of pins? 17. How Adam Smith link division of labour with the extent of the market linked?

18. Why, according to Adam Smith, were the nations on the coast of the Mediterranean Sea the first nations to be civilized?

19. Can the wages fund of classical economics a concept that can be linked to ideas the Physiocrats developed? Why or why not?

20. What did Adam Smith mean by effectual demand?

21. What did Adam Smith mean by the concepts of sympathy, impartial spectator, and invisible hand?