T H E D E V E L O P M E N T O F

ECONOMICS
RICARDO
Industry specialisation and

1772 free trade can lead to

The theory of Comparative positivity, which is absolute

Advantage advantage.

Keynes
Spending boosts aggregate

output and more income. If

1883
workers spend more of their
The theory of Fiscal
disposable income, there
Stimulus
will be a higher growth in

GDP.

robinson
Each seller carries goods

1903 that have unique properties

Imperfect Competition in the consumer's

perspective, so these sellers

may have a partial

monopoly.

Galbraith
wants create more wants.

workers now have to satisfy

1908
those wants, creating a
The Dependence Theory
dependence effect.
- a radical Keynesian

FRIEDMAN
1912 A company's main goal is to

Stockholder Theory increase profits for the

- also rejected the owners as long as fraud is

Keynesian theory not present

Krugman a person can specialise in producing

the good of lowest opportunity cost to

them and trade for other products

1953 (produced by others) and be better off

than if there were no trade at all, and

New Trade Theory
each person manufactured everything

they want on their own.