according to adam smith and other classical economists, why is the economic theory supporting market economies(or capitalism) mu

Question

miv72 [106K]

3 years ago

14

according to adam smith and other classical economists, why is the economic theory supporting market economies(or capitalism) mu

ch more realistic than theories supporting sommand economies?

Physics

1 answer:

grin007 [14] · Answer 1 · 2022-01-10T21:25:05+03:00

Classical economics is a branch of the economics that states that economy is always moving towards equilibrium, which means that a change in supply will eventually be matched by a change in demand. The father of classical economics is Adam Smith with his book<span> The Wealth of Nations in 1776.</span>
The economic theory supporting market economies (or capitalism) is much more realistic than theories supporting command economiesIt is based on self interest.