- "Neoclassical economics is an approach to economics in which the production, consumption, and valuation (pricing) of goods and services are observed as driven by the supply and demand model."
This topic covers the works of neoclassical economists such as Alfred Marshall and John Bates Clark. It discusses their contributions to economic thought and their ideas about market equilibrium, marginal utility, and consumer behavior.
Classical Political Economy: This topic involves the study of political economy prior to the emergence of neoclassical theory, particularly the works of Adam Smith, David Ricardo, and Thomas Malthus.
Marginalism: Marginalism is the idea that economic value is subjective and derived from the marginal utility (value) of individual goods and services.
Modern Political Economy: The study of political economy in the twentieth century, particularly neoclassical economics, behavioral economics, and game theory.
Supply and Demand: A fundamental economic concept that describes the relationship between the quantity of goods and services supplied and the quantity demanded at a particular price.
Equilibrium: Neoclassical economics aims to understand how markets reach a state of equilibrium, where demand and supply are balanced.
Rational Choice Theory: The theory that individuals make decisions based on a rational calculation of benefits and costs.
Market Failure: This concept involves situations where markets fail to allocate resources efficiently, such as when there is a lack of competition, public goods, or externalities.
Public Choice Theory: This theory examines the behavior of political agents, such as politicians and bureaucrats, in addition to individual consumers and producers.
Game Theory: The study of strategic decision-making in situations of competition and cooperation.
Behavioral Economics: The study of how cognitive, emotional, and social factors influence economic decision-making.
Income Distribution: The study of how income is distributed among individuals and households and its implications for economic growth and social welfare.
Economic Growth: The study of how economies grow over time and the factors that influence growth.
International Trade: The study of trade between nations and its effects on prices, employment, and economic development.
Monetary Policy: The study of how central banks use monetary policy tools to control inflation, interest rates, and the money supply.
Fiscal Policy: The study of how governments use taxation and public spending to influence the economy.
Rational Actor Theory: This theory assumes that individuals rationally weigh the costs and benefits of their actions and make decisions that maximize their utility.
Game Theory: Game theory is a mathematical model that predicts how individuals or entities will behave in a strategic situation where their actions affect the outcome of the game.
Public Choice Theory: This theory applies the principles of economics to the study of politics and suggests that politicians and bureaucrats act in their self-interest and may not always act in the best interests of the public.
New Institutional Economics: This theory studies the role of institutions in the economy, including property rights, contracts, and regulations, and how they affect economic behavior.
Contract Theory: Contract theory studies how different contractual arrangements affect economic behavior and the allocation of resources.
Behavioral Economics: Behavioral economics studies how psychological factors affect economic behavior and decision-making.
Social Choice Theory: This theory studies how individuals make collective decisions and how different voting systems affect the outcome of the decision-making process.
Information Economics: This theory studies how information affects economic behavior and how individuals and organizations acquire, process, and use information.
Principal-Agent Theory: Principal-Agent theory studies the relationship between someone who hires another person to complete a task and the person who is hired to complete the task.
Public Goods Theory: Public goods theory studies how goods that are non-excludable and non-rivalrous are produced and distributed in society.
- "The value of a good or service is determined through a hypothetical maximization of utility by income-constrained individuals and of profits by firms facing production costs and employing available information and factors of production."
- "This approach has often been justified by appealing to rational choice theory."
- "Neoclassical economics historically dominated microeconomics."
- "Neoclassical economics... formed the neoclassical synthesis which dominated mainstream economics as 'neo-Keynesian economics' from the 1950s to the 1970s."
- "It competed with new Keynesian economics as new classical macroeconomics in explaining macroeconomic phenomena from the 1970s until the 1990s."
- "When it was identified as having become a part of the new neoclassical synthesis along with new Keynesianism."
- "There have been many critiques of neoclassical economics."
- "Some of which have been incorporated into newer versions of neoclassical theory."
- "Whilst some remain distinct fields."
- "The production, consumption, and valuation (pricing) of goods and services."
- "Through a hypothetical maximization of utility by income-constrained individuals."
- "Profits by firms facing production costs and employing available information and factors of production."
- "Neoclassical economics... formed the neoclassical synthesis which dominated mainstream economics as 'neo-Keynesian economics' from the 1950s to the 1970s."
- "It competed with new Keynesian economics as new classical macroeconomics in explaining macroeconomic phenomena from the 1970s until the 1990s."
- "The new neoclassical synthesis along with new Keynesianism."
- "There have been many critiques of neoclassical economics."
- "Some of which have been incorporated into newer versions of neoclassical theory."
- "Whilst some remain distinct fields."
- "Neoclassical economics is an approach to economics in which the production, consumption, and valuation (pricing) of goods and services are observed as driven by the supply and demand model."