Economic Theories

Question 1

Emphasizes that free markets can REGULATE themselves.

It argues that supply & demand will naturally reach equilibrium

Answer 1

Classical Theory by Adam Smith

Question 2

Builds an classical ideas but incooperate a MORE DETAILED ANALYSIS.

Assumes that individuals make rational choices to max their utility

Answer 2

Neoclassiscal Theory By

William Stanley, Carl Menger, Leon Williams

Question 3

Based on the economic system that evolves through stage at development

Focuses on class struggle

Answer 3

Marxist by Karl Marx

Question 4

Focuses on the role of permanent in controlling the amount of money in circulation

Answer 4

Monetarism

Question 5

Advocates for active goverment interversion in the economy. Specially during accessions

Answer 5

Keyresi(?) By John Maynard Keyres