The Iron Law of Wages
Was an alleged law of economics that asserted that wages will tend towards and reach the sustenance level due to market forces.
Economics -
The study of how people utilize and distribute scarce resources based on supply and demand. More specifically, it is the study of how people use their limited resources in an attempt to satisfy unlimited wants.
Closed Market Economy -
Where trade and commerce are extremely limited to governmental controls or desires. This is often seen in medieval times where kingdoms kept to themselves and only produced what the King desired or locals needed.
Wealth of Nations -
Text of Adam Smith where he introduced the ideas of open markets and Laissez Faire Economics.
Open Market Economy -
Where trade and commerce are encouraged outside of political boundaries.
Laissez Faire Economics -
"Hand's Off" economics where government interference in the economy is minimal.
Malthus, Thomas Robert -
British economist who wrote An Essay on the Principle of Population (1798), arguing that population tends to increase faster than food supply, with inevitably disastrous results, unless the increase in population is checked by moral restraints or by war, famine, and disease.
Ricardo, David -
British economist whose major work, Principles of Political Economy and Taxation (1817), supported the laws of supply and demand in a free market.
Was an alleged law of economics that asserted that wages will tend towards and reach the sustenance level due to market forces.
Law of Diminishing Return
When one of the factors of production is held fixed in supply, successive additions of the other factors will lead to an increase in returns up to a point, but beyond this point returns will diminish.
Capitalism
Generally refers to an economic and social system in which the means of production are predominantly privately owned and operated, and in which investments, distribution, income, production and pricing of goods and services are determined through the operation of a market economy.
Socialism
Refers to a broad array of ideologies and political movements with the goal of a socio-economic system in which property and the distribution of wealth are subject to control by the community.
Communism
Refers to a socioeconomic structure that promotes the establishment of a classless, stateless society based on common ownership of the means of production.