Question

1. Compare and contrast the classical and neoclassical theories. What are some problems with each of the schools? Include information on assumptions, relevant theorists, and applicable studies. Be specific

2. How have biological theories changed over time? Use specific examples to enhance your answer.... Be specific

Answer 1

Comparison: They both are the theories of economics and deal with the goods and services.

Contrast: The classical school emphasizes production of goods and services as the key focus of economic analysis while the Neoclassical focuses on how individuals operate within an economy. Also, the neoclassical school emphasizes the exchange of goods and services as the key focus of economic analysis.

Problem with each: The neo-classical approach is the "trade-off, which is actually a compromise. That has a ring of reasonableness to it, but it presumes a zero-sum condition. At the level of public policy, such "trade-offs" turn into paralyzing stand-offs, where no one gets nearly what he wants, or could get. The problem with the classical doctrine was its dependence on the existence of a numeraire. There were many attempts in the classical period to find one that made sense but the classical economists accepted labor as the best available candidate.