Cash In on This History of Economics Quiz

An American economist, Thorstein Veblen turned a critical eye toward the dangers of unchecked capitalism in his work, including his 1899 book, "The Theory of the Leisure Class." He introduced the phrase "conspicuous consumption" to describe the ostentatious wealth on display during the late Industrial Age, which was accompanied by a growing gap between rich and poor.

Under a centrally planned, or command, economy, governments make all economic decisions on production, resources, and prices. This contradicts other systems which allow for varying degrees of influence by businesses or individuals. The concept of command economies was developed by Karl Marx and others and used by various communist governments.

Canadian American John Kenneth Galbraith was an economist and author of several popular books, including "The Affluent Society" (1958), which called for increased spending on government infrastructure and programs to benefit the needy. Galbraith later became a close advisor to President John F. Kennedy.

Born in the U.K., Alfred Marshall brought the rigor of mathematics to economic scientific theory. Marshall’s groundbreaking 1890 book, "Principles of Economics," included several theories with lasting impact, including price elasticity, consumer surplus, and a supply and demand curve that is still used by economists today.

Milton Friedman became a close advisor to both President Ronald Reagan and British Prime Minister Margaret Thatcher, who implemented his theories of noninflationary monetary policy, less regulation and government spending, and lower marginal tax rates. Friedman also championed the introduction of capitalism into authoritarian countries as a means of spreading democracy during the Cold War.

American economist Milton Friedman’s theory of limited government control was the antithesis of Keynesian economics, which Friedman believed was the chief cause of inflation. Friedman’s theory strongly supported free markets and called for deregulation of businesses and foreign trade and tax cuts. Friedman won a Nobel Prize in Economic Sciences in 1976.

British economist John Maynard Keynes revolutionized the field with his liberal economic theory, which called for increased government involvement and public spending during periods of prolonged economic downturns and high unemployment, such as the Great Depression. He influenced President Franklin Roosevelt’s “New Deal,” became the father of “Keynesian” economics, and helped create the International Monetary Fund and the World Bank.

German-born philosopher Karl Marx helped lay the foundation for modern communism and socialism during the late 19th century with works like "Das Kapital," or “Capital,” and "The Communist Manifesto'' (co-written with Friedrich Engels). In these works, Marx called for the overthrow of the capitalist government by a “proletariat” of long-exploited working-class industrial workers and the abolition of private property.

Born in Scotland in 1723, Adam Smith helped develop a number of key economic theories, including the free market, gross domestic product (GDP), and the division of labor. His most influential book, "The Wealth of Nations," published in 1776, was the first to outline the principles of modern political economics and is considered the “bible of capitalism.”

Translated from French as “let it be,” laissez-faire was an economic theory developed by an 18th-century economics group known as the physiocrats. Adam Smith adapted their ideas into his principle of the “invisible hand,” in which economies function best when there is limited involvement from the government and individuals act in their own self-interest in the free market to generate economic growth.