Assignment:
1. Explain Thorstein Veblen's theory of consumption. Does he believe that economic behavior -such as consumption, is driven by utilitarian calculations or by socio-cultural factors? What is the point of conspicuous consumption? What is emulative consumption? What role do envy and invidious distinctions play in this process? What does this imply for the presumed efficiency of a capitalist society? Elaborate.
2. Explain John Maynard Keynes's concept of the effective demand for labor. How does Keynes's theory differ from the Neoclassical theory of the labor market? Elaborate.