Unit 1.2·Introduction

Marxist Critique of Classical Thought (19th Century)

Economic Methodology and the Evolution of Economic Thought

AO2

Syllabus requirement

Summarises Marx’s analysis of capitalism, surplus value and class conflict.

Assessment objectives

AO2 Application and Analysis

Summary

This topic explains Karl Marx’s critique of nineteenth-century classical economics, contrasting classical ideas of self-regulating markets, utility theory and Say’s law with Marx’s focus on labour, surplus value and exploitation. It is important for IB Economics because it shows an alternative view of how value, profit and economic power are generated and challenges assumptions about markets, production and distribution.