Neoclassical Economics and Its Critics
Neoclassical economics emerged out of a centuries-long debate over two issues: (1) What constitutes proper economic activity and (2) how do we measure value? The “marginalists” of the 1870s finally developed an approach under which consumer choice determined what constituted proper economic activity and under which value could be derived from the subjective preferences of consumers. There was, until that time, an insistence that certain kinds of economic activity were to be eschewed as socially harmful and that value originated with the labor content of goods. The marginalists’ emphasis on consumer sovereignty put an end to all of that.
Economic Thought Leading up to the Neoclassical School
Goring ...
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