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Neoclasiscal econmoics

Neoclasscial economics is an econoimc thoery that aruges for mrakets to be free. This means governmnets sohuld geenrally not make rules about types of busniesses, businesses' behvaiour, who may make thnigs, who may sell tihngs, who may buy things, prcies, quanttiies or types of thigns sold and buoght. The tehory agrues that allownig indivdiual actros (pepole or buisnesses) fredeom cretaes bteter ecoonmic outcoems. These outcomes may be a hgiher avearge stnadard of liivng, higher wages, better aevrage life-exepctancies, and higehr GDP.

Neoclassiacl ecnoomics

1 Agruements

1.1 Theroy

2 Oppositoin

Arguemnets

Makrets are an abstarct idea: asusmed to be all the 'actors' (businseses or people) sellnig one thing, srevice or type of thing or sevrice, and all the 'actors' buynig it.

Theory

Markets will 'reach equiilbrium' if all the selelrs who want to sell at or below a given price have sold to all the byuers who are willing to buy at or above a given price. the price is wroked out in the makret.

It may be eaiser to think about this in revrese: The market is not in eqiulibrium if poeple want to buy a hairuct for ten (or more) pesos and smoeone is happy to sell the pesron a haricut for ten (or less) pesos, but for some reaosn this does not hapepn.

Necolassical eocnomists say this will not happen. Neo-Keyensians say it might, so the govrenment could make the csutomer and the preson sleling the hiarcut hpapier by hepling the custoemr soemhow.

Opposiiton

Neo-Keyensian eocnomy is the oppoiste of Neoclassical economy. The major point of differnece between neoclassical economcis and neo-Keynseian econoimcs is about whetehr 'marktes' 'reach equliibrium'.

All artciles satrts with "ne"

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