Question

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What are the key assumptions and policy prescriptions of the Physiocrats?

Answer 1

The Physiocrats is the group of the economist belonging to France according to the Physiocrats the real wealth of the nation is Agriculture and contribution to the labor in the agriculture help to increase th wealth of the nations.

According to the Physiocrats, agriculture is sectors is the only able to produce the "net product " is the excess wealth is produced above what is required.

According to the Physiocrats, the commerce and industry support the agriculture and "net product" determines the wealth of th enation higher the net product higher wealth of the nations.Because of agriculture sector able produce surplus yield.

The other contributions of the Physiocrats.

• The physiocrats laid the foundations of the scientific development economic thought
• They showed the interdependence of the economic sector
• they emphasized on direct taxation rather than indirect taxation.