Study Cards on political, economy, economic
- Classical/neoclassical political economy
- Marxist political economy
Based on liberal assumption that individuals , as rationally self-interested creatures (utility maximizers) are the key economic actors (act to achieve the greatest pleasure over pain).
Idea that an unregulated market economy tends towards long-run equilibrium, in that the price mechanism (the invisible hand) brings supply and demand into line with one another.
This implies a policy of laissez-fair. Economic change via the market is therefore a positive-sum game, in that greater efficiency produces economic growth and benefits everyone.
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