Question

1. What is neoclassical economics and when did the term begin to be used?
2. What is the invisible hand?
3. What does it mean to say that markets are self-regulating?
4. What is the economic meaning of the phrase 'laissez-faire'?

Answer 1

Neoclassical theory is Theory which focuses on the determination of output , goods and distribution of income by way of demand and supply in the markets . neoclassical is known to be extended version of classical theory.

Neoclassical theory was began to used in the late19th century in the books of economists like carl mengar , willian stanlay etc

Invisible hand is the market which is unobservable which forces the demand and supply of any particular goods automatically to reach at its equlibrium level

Market are self regulating means that a market where buyers or sellers themselves put regulations governing the market. Self regulating Market is used performed by the government

Laissez faire in economics means that the lesser the involvement of the government will be there in the market the more will be the markets will be extended in the economy as a whole