Question

Classical economics: list the tenants of the classical school (1. 2. 3. 4.)

Answer 1

Classical school of economics is associated with Adam Smith, David Ricardo, Malthus etc.

Four tenets or key features of classical economics are-

1. Markets works best when they are left alone without any government intervention or laissez-faire.

2. Markets will always return to full employment output level through automatic aadjustment.

3. Price mechanism act as an invisible hand to allocate scarce resources to their best use.

4. Supply creates it's own demand (Say's laws).

answered by: anonymous