Question

What does classic economics concentrate on?

Answer 1

Ответ:

Classic economics concetrate on labour theory of value, market relationships and economical liberalism.

Answer 2

Classic Economics

Classic economics, also known as classical economics, is a school of economic thought that emerged in the 18th and 19th centuries. It focuses on understanding the principles and mechanisms that govern the functioning of market economies. Classic economics emphasizes the role of individual decision-making, free markets, and limited government intervention in economic activities.

Key Points: - Classic economics concentrates on the following aspects: - Individual Decision-Making: Classic economics examines how individuals make choices based on their preferences, constraints, and rationality. It explores concepts such as utility maximization and cost-benefit analysis. - Supply and Demand: Classic economics analyzes the interaction between supply and demand in determining prices and quantities in markets. It explores the concept of equilibrium, where supply and demand are balanced. - Market Mechanisms: Classic economics emphasizes the efficiency of market mechanisms in allocating resources. It argues that free markets, driven by self-interest and competition, lead to optimal outcomes. - Limited Government Intervention: Classic economics advocates for minimal government intervention in economic activities. It argues that government intervention, such as price controls or excessive regulation, can distort market outcomes and hinder economic growth. - Factors of Production: Classic economics considers the role of land, labor, and capital as the primary factors of production. It explores how these factors are combined to create goods and services. - Long-Run Growth: Classic economics examines the determinants of long-run economic growth, such as technological progress, capital accumulation, and specialization.

Classic economics is associated with influential economists such as Adam Smith, David Ricardo, and John Stuart Mill. Their works, such as Smith's "The Wealth of Nations" and Ricardo's "Principles of Political Economy and Taxation," laid the foundation for classical economic theory.