Which School of Economics Do You Belong To?

Many aspiring MBAs, particularly those with a background in finance, will be more than familiar with the concept of there being differing ideologies and tracts of thought in economics – but do you know which school of economics best represents your own viewpoint?

Ha-Joon Chang is a renowned figure in the field of development economics and currently holds the position of reader (equivalent to professor) at the University of Cambridge. As well as having served as a consultant to the World Bank, he is regarded as having had a strong influence on Rafael Correa, Ecuador’s incumbent president.

Writing around the theme of accessibility in his new book, Economics: The User's Guide, Chang brings to light some common misconceptions about the subject – including the idea of there being many more than just one school of economics.

Indeed, Chang wants to highlight how different one school of economics can be from another. To assist him in his quest, we’ve formed a basic quiz from his informative table which should allow you to see school of economics best represents you….

A. selfish and rational (but rationality is defined in class terms)

B. selfish and rational, except for workers fighting for socialism

C. not very rational (driven by habits and animal spirits); ambiguous on selfishness

D. no strong view

E. no strong view, but emphasis on non-rational entrepreneurship

F. selfish and rational

G. only boundedly rational and layered

H. layered (instinct – habit – belief – reason)

I. selfish but layered (rational only because of an unquestioning acceptance of tradition)

A. certain (‘iron laws’)

B. certain (‘laws of motion’)

C. uncertain

D. uncertain, but no strong view

E. no strong view but complex

F. certain with calculable risk

G, H & I: complex and uncertain