Method
Neoclassical economics
Overview
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. According to this line of thought, 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 is the dominant approach to microeconomics and, together with Keynesian economics, formed the neoclassical synthesis which dominated mainstream economics as "neo-Keynesian economics" from the 1950s onward.
Overview adapted from Wikipedia (CC BY-SA 4.0; see the article history for authors).
Possible passages
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When two things, though made by equal labor, are of unequal value because the one is called upon to yield profit for a greater number of years or months than the other, this difference of value will be greater when profits are greater, and less when they are less. The wine which has to yield five years’ profit more than the cloth will surpass it in value much more if profits are forty per cent than if they are only…
John Stuart Mill, Principles of Political Economy
States what Neoclassical economics is; the author is tied to Neoclassical economics in the knowledge graph.
The actual price at which any commodity is commonly sold, is called its market price. It may either be above, or below, or exactly the same with its natural price.
Adam Smith, An Inquiry Into the Nature and Causes of the Wealth of Nations
States what Neoclassical economics is; the author is tied to Neoclassical economics in the knowledge graph.
The whole produce, therefore, after replacing the wages of labour, would be clear profit to the capitalist.
John Stuart Mill, Essays on some unsettled Questions of Political Economy
The author is tied to Neoclassical economics in the knowledge graph.
Philosophers who discussed Neoclassical economics
Related ideas
- Austrian school of economics
- Friedrich Hayek
- Game theory
- Profit (economics)
- John Stuart Mill
- Laissez-faire
- The Wall Street Journal
- Labor theory of value
- Adam Smith
- Function (mathematics)
- Milton Friedman
- William Stanley Jevons
- Paul Samuelson
- Classical economics
- Pseudoscience
- Frank P. Ramsey
- Rational choice model
- Utilitarianism
- Value theory
- Vilfredo Pareto
- John Maynard Keynes
- Praxeology
- Marxian economics
- Welfare economics
Place in the tradition
Part of Ecological economics.