Question

1. Mention three main ideas of the classical school, which were accepted by Karl Marx .

Answer 1

Karl Marx was a socialist while the other prominent classical economists were liberals. The main three ideas of the classical school that Marx not just accepted but elaborated are:

1. Labor Theory of value : Founded by Adam Smith and then taken up by Ricardo, the labor theory of value is considered the foundation of Marx's Theory and critique of capitalism.

2. No Utility Approach : The modern economics i.e. the neoclassical framework stands upon the utility approach to economics, but both the classical economists and the Marxian school does not rely on the utility approach to their theories.

3. Modes of Analysis : Both the classical school and the Marxian school have similar modes of analysis for their theories. Both schools use the factors of production as their cornerstones for analysis. Marx concentrated on the exploitation of labor as the main factor of production and his main point to the critique of Capitalism.