Neo Classical Economic Analysis

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MASW (RD), DPPP, SLNG, SIE – I Year First Semester Introduction to Political Economy Total : 40 Marks I. Write a short essay on any Two of the following (2 X 10 = 20 Marks) 1. Distinguish between Classical Political Economy and Neo-Classical Economics 2. Ans - Classical Economy Neo-clssicle Economy 1. classical economy is macro level concept 1.Neo-classical economy is micro lavel concept 2- In classical Economy there is every thing is depend on utilitarian approach 2-In neo-classical economy isn’t every time depend on the utilitarian approach 3- Classical economy is statistic concept 3 Neo- classical economy…show more content…
Economics is a study of economic performance and the economic behavior. it developed by ideas of combination of classic idea and Marxist idea or both separate or individual ideas .which explains economic ideas , Marxist idea . This is concept where various ideas Get progress in this process various models were got developed. It explains the phinomina Value ,growth ,prize and wealth by cultural and spiritual settings .whether the certain relatiaforementioned historical framework, economics has followed a trajectory that is characterized by a multiplicity of doctrines and schools of thought, usually identifiable with a thinker or thinkers whose ideas and theories form the foundation of the doctrineonship and variables are considered most valuable than others .in the context…show more content…
The assert behind this was to power of market system .if we keep this single it will be full fill of the economic employment and employment resource . it assume that some time deviations from whole employment it will be the result from political and economic events . the adjustment in wages and prize will be automatic and to full employment interest rate will restore by the economy . john locke’s conception of natural order was provided the philosophy foundation of classical economics , while the foundation of economic was based on the adam smiths theory of self interest and jean baptiste law says it depend on the market demand and supply . also this theory is founded on 2 maximum first , under the some constraints each individual maximizes her or his preference function the actions of all individuals in the market it presupposed the existence of interpendencies expressed . under the assumption of perfect and pure completion,these 2 qualities will determine resource income distribution and allocation means we can say they are regulating demand and supply .the optimization of social organization and allocation of production . under the leadership of adam smith and david recardo with the help of jean baptiste and the Malthus ,all the classical economist believed on the adam smiths invisible hands self regulating economic system and self interest and also on capital

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