Classical Economics
Classical economics is a school of thought that emerged in the late 18th and early 19th centuries, emphasizing free markets, competition, and the idea that economies naturally adjust to changes. Key figures like Adam Smith argued that when individuals pursue their self-interest, they contribute to overall economic prosperity, often summarized by the concept of the "invisible hand." Classical economists also believed in the importance of production and the idea that value comes from the labor required to create goods and services. Overall, this approach laid the groundwork for modern economic theory and policy.
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Classical economics is a school of thought that emerged in the late 18th and early 19th centuries, emphasizing free markets and the idea that economies function best with minimal government intervention. It posits that supply and demand determine prices and that individuals acting in their self-interest contribute to economic growth. Key figures, like Adam Smith, argued for the "invisible hand" guiding markets toward efficiency. Classical economics also suggests that resources are best allocated through competition, leading to innovation and prosperity. Its principles laid the groundwork for modern economic theories.
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Classical economics is a school of thought that emerged in the late 18th and early 19th centuries, focusing on the idea that free markets, guided by supply and demand, lead to efficient resource allocation. Key figures like Adam Smith emphasized the role of individual self-interest and competition in promoting economic growth. Classical economists believed in the “invisible hand” of the market, suggesting that when individuals pursue their own interests, they inadvertently benefit society as a whole. They also supported limited government intervention, arguing that a stable currency and free trade are essential for a prosperous economy.