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( Neoclassical economics)
Neoclassical economics refers to a general approach in economics focusing on the determination of prices, outputs, and income distributions in markets through supply and demand. These are mediated through a hypothesized maximization of income-constrained utility by individuals and of cost-constrained profits of firms employing available information and factors of production.[1] Mainstream economics is largely neoclassical in its assumptions, at least at the microeconomic level.[2] There have been many critiques of neoclassical economics, often incorporated into newer versions of neoclassical theory as human awareness about economic criteria change. Neoclassical economics is often called the marginalist school. Neoclassical economics is the singular element several schools of thought in economics address[citation needed]. There is not a complete agreement on what is meant by neoclassical economics, and the result is a wide range of neoclassical approaches to various problem areas and domains -- ranging from neoclassical theories of labor to neoclassical theories of demographic changes. As expressed by E. Roy Weintraub, neoclassical economics rests on three assumptions, although certain branches of neoclassical theory may have different approaches From these three assumptions, neoclassical economists have built a structure to understand the allocation of scarce resources among alternative ends -- in fact understanding such allocation is often considered the definition of economics to neoclassical theorists. Here's how William Stanley Jevons presented "the problem of Economics". "Given, a certain population, with various needs and powers of production, in possession of certain lands and other sources of material required, the mode of employing their labour which will maximize the utility of their produce."[3]
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