Past Paper On History Of Economic Thought II For Revision
If History of Economic Thought I was about the foundations (Smith, Ricardo, Marx), History of Economic Thought II is about the Modern Synthesis. This course tracks how economics transformed from “Political Economy” into a rigorous, mathematical social science. You will explore how the focus shifted from the cost of production to the subjective value of the consumer, and how the Great Depression fundamentally altered the role of government in the economy.
Below is the exam past paper download link
BEC-3355-HISTORY-OF-ECONOMIC-THOUGHT-II-
Above is the exam past paper download link
To help you connect the dots between the Great Depression and modern Game Theory, we’ve synthesized the most recurring “intellectual history” questions from past papers.
History of Economic Thought II: Key Revision Q&A
Q1: What was the “Marginalist Revolution” and who were its key figures? A: Occurring in the 1870s, this was a pivot away from the “Labor Theory of Value.” Led by Jevons, Menger, and Walras, it argued that value is determined by Subjective Utility—specifically, the utility of the last (marginal) unit consumed. This allowed for the mathematical modeling of consumer choice and laid the groundwork for modern Microeconomics.
Q2: How did Alfred Marshall reconcile Classical and Marginalist thought? A: Marshall is famous for his “Scissors” analogy. He argued that just as both blades of a pair of scissors are necessary to cut paper, both Supply (Classical cost of production) and Demand (Marginalist utility) are necessary to determine price. He introduced the concepts of Price Elasticity and Consumer Surplus, creating the “Neoclassical” synthesis we study today.
Q3: Contrast the “Keynesian Revolution” with the Classical Treasury View. A: Before 1936, the “Treasury View” held that markets always self-correct. John Maynard Keynes, in his General Theory, argued that economies could get stuck in a “Low-Level Equilibrium” (recession) due to a lack of Effective Demand. He championed the use of Fiscal Policy (government spending) to “prime the pump” and restore full employment, a radical departure from the laissez-faire orthodoxy of the time.
Q4: What is the “Monetarist Counter-Revolution” led by Milton Friedman? A: In the 1960s and 70s, Friedman challenged the Keynesian consensus. He argued that “Inflation is always and everywhere a monetary phenomenon.” He introduced the Natural Rate of Unemployment and argued that government attempts to manage the economy through fine-tuning often cause more instability than they prevent. He advocated for a steady, predictable growth in the money supply.
Q5: Describe the rise of “Institutionalism” and its critique of Neoclassical theory. A: Thinkers like Thorstein Veblen and later Oliver Williamson argued that humans are not just “rational calculators” (Homo Economicus). They argued that habits, social norms, and legal institutions (like property rights and contracts) shape economic behavior just as much as prices do. This led to the modern fields of New Institutional Economics and Behavioral Economics.
Why Practice with History of Economic Thought Past Papers?
Exams in this subject are almost entirely Essay-Based and Comparative. You won’t be asked for a date; you’ll be asked to “Compare and contrast the views of Keynes and Hayek on the role of the state during a financial crisis.”
By practicing with our past papers, you will:
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Refine Your Argumentation: Learn to build a “genealogy of ideas,” showing how one theory was a reaction to the failures of a previous one.
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Master the Vocabulary: Confidently use terms like Methodenstreit, General Equilibrium, and Liquidity Preference.
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Understand Context: Practice explaining how historical events (like the 1970s Stagflation) led to the downfall of certain economic schools of thought.
Access the Full Revision Archive
Ready to stand on the shoulders of giants? We have organized a comprehensive PDF library containing five years of History of Economic Thought II past papers, complete with model essays, timelines of major publications, and summary charts of the different Schools of Economic Thought.
