classical economics

  

Definition

School of economic thought which stresses that economies function most efficiently if everyone is allowed to pursue his or her self interest, in an environment of free and open competition. Based on the ideas of eighteenth and nineteenth century British economists from Adam Smith (1723-90) through to Alfred Marshall (1842-1946). Also called classical school of economics. See also new classical economics and neo classical economics.

Use classical economics in a sentence

  • I studied classical economics and was really glad that it was simple, lucid and I was able to understand it.

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  • While the theory of classical economics favors a sort of Darwinian approach to free enterprise, there are those who suggest that the capitalist system in the U.S. is grossly tilted toward those who are already wealthy becoming wealthier.

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  • Classical economics, which encourages the following of your own self interest, has been an important foundation of the pursuit of the American Dream.

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