History of Thought - Final Essay

Provide a series of essays on each of the following topics. The entire work should be 7-10 pages
as a maximum. Please use 12 point font, standard margins, Times New Roman font, and double
spacing. We are short on time, lets make these due Thursday the 22nd by hard copy in my mail box. I
will be on campus Tuesday and Thursday of next week but will be in and out giving finals. I will also
need you to submit to “safe assign” via Blackboard.
1. (Semi-short essay) Wicksteed made a significant contribution to value theory during the
marginal utility revolution. This contribution was the “Exhaustion of the product” which
we derived in class. Explain the importance of this contribution. Explain the significance
of the Euler theorem and the assumption of constant returns to scale in deriving the
solution. In what ways is this contribution similar to Marx's Transformation Problem, in
what ways is it different?
2. (Short essay) Adam Smith rejected utility as a foundation for value. He illustrates this
rejection in his famous diamonds and water paradox. Briefly explain how the cognitive
switch from total utility to marginal utility resolves this paradox.
3. (Long essay) The stability of the economic system and the laissez-faire doctrine has
been a theme throughout the course. Trace the evolution of work on this topic. You will
have two archs to trace. First those theorists who are trying to prove that the system is
stable. Secondly those who are trying to prove that the system is inherently unstable. For
each scholar provide their position on the issue as well as the theoretical mechanism that
drives stability/instability. Be sure to include each of the following:
- A. Smith (Invisible hand)
- L. Walras (Walrasian Auctioneer)
- K. Marx (Laws of Motion)
- Edgeworth (Edgeworth Box)
- Keynes (Animal Spirits)
- Schumpeter (Creative Destruction)
Parenthesis provides hints for the structure of your essay.