What is meant by just price?

What is meant by just price?

1 : a price conforming to the doctrine developed in antiquity and elaborated in the medieval period that price should in general correspond to the cost of production. 2 : a price approved by common estimate, determined by a legal maximum, or conforming to some other standard of rightness or equity.

Is there such thing as a just price?

The just price is a theory of ethics in economics that attempts to set standards of fairness in transactions. With intellectual roots in ancient Greek philosophy, it was advanced by Thomas Aquinas based on an argument against usury, which in his time referred to the making of any rate of interest on loans.

What was the medieval economy?

Like all pre-industrial societies, medieval Europe had a predominantly agricultural economy. Examples of large-scale industrial units were the salt-mines of central Europe, stone quarries in various places, and shipbuilding, especially in the larger ports.

What are the economic ideas of St Thomas Aquinas?

His economic ideas include the institution of private property, usury, and just price. On many an occasion, St. Thomas more or less repeats the views of Aristotle. He had a distinct tendency to reconcile theological dogma with the existing conditions of economic life.

What did Thomas Aquinas say regarding just price?

The laws and customs of a society can either help or hinder the pursuit of virtue. There can never be a “just price” between vicious people or for vicious actions. The moral character of the buyers and sellers is more important than the act of buying and selling itself.

What is Islam and theory of just price?

The Concept of Just Price in Islam: The Philosophy of Pricing and Reasons for Applying It in Islamic Market Operation. This paper reveals that a just price in Islam is based on the principles of ‘an taradhin minkum (mutual goodwill) and al’adl (justice) which must exist in goods and services pricing.

What is just wage theory of St Thomas Aquinas?

In the Middle Ages St Thomas Aquinas examined the notion of a just wage and concluded that such a wage should include the value of the product produced along with a remuneration to reward the labour of the work effort expended.

What is the contribution of Adam Smith in economics?

Adam Smith was an 18th-century Scottish economist, philosopher, and author, and is considered the father of modern economics. Smith’s ideas–the importance of free markets, assembly-line production methods, and gross domestic product (GDP)–formed the basis for theories of classical economics.

Who discussed the concept of just price?

John Locke (17th century AD) John Locke writes in Venditio, his treatment on morality and market exchange, that the market price (similar to the common estimation view) is the just price.

What is just price according to Thomas Aquinas?

When Aquinas refers to the “just price,” he means the price mutually reached by reflective, considerate people who are transacting directly with each other, who are active in the same community, and who understand themselves as parts of one whole.

Where did the idea of just price come from?

The just price is a theory of ethics in economics that attempts to set standards of fairness in transactions. With intellectual roots in ancient Greek philosophy, it was advanced by Thomas Aquinas based on an argument against usury, which in his time referred to the making of any rate of interest on loans.

What was the price of wheat in medieval times?

Some time later, an axe cost about 5 pence in mid-15th century England, while wheat cost approximately 0.2 g of silver per liter (not much different than the per-liter price in ancient Greece). Copper/bronze coinage was not minted regularly during the medieval period, as government mints focused on silver and gold coinage.

What was the price of wine in the 14th century?

In the early 14th century, wine cost between 3 pence and 10 pence per gallon in England, and two dozen eggs could be had for 1 pent. Some time later, an axe cost about 5 pence in mid-15th century England, while wheat cost approximately 0.2 g of silver per liter (not much different than the per-liter price in ancient Greece).

Why was the marketplace important in medieval times?

Everyone in medieval societ y is heavily dependent on each other for such supplies, and the marketplace is where all these interdependencies meet. Essential items such as ale and bread have their prices fixed by law. Yet for almost everything that’s been manufactured you will have to negotiate.