Neoclassical economics
Neoclassical economics is the dominant approach to economics currently taught and practiced in most of the world (and especially dominant in Anglo-Saxon
countries). It attempts to explain the behaviour of the economy on the basis of competitive, utility-maximizing behaviour by companies, workers, and consumers. Their actions in the markets for both factors of production and final products will ensure that all available resources are fully utilized (that is, the economy is supply-constrained) and every factor is paid according to its productivity.
Category: Economics
Previous: ← Rate of unemployment
Next: Neoliberalism →
More from this Section
- Saving
Saving is the portion of income which is not spent on consumption. Saving can be undertaken ... - Development
Economic development is the process through which a country’s economy expands and improves ... - Sticky Price
Sticky Prices are the costs that are immune to instant market fluctuations. These are ... - Consumption
Consumption is the act of using up resources which can apply to the food and drinks stomached ... - Encroachment
Encroachment conveys the idea of something steadily moving into someone else's space, ...