Neoclassical economics is a school of economic thought that emerged in the late 19th century and is still influential today. It is based on the idea that individuals are rational decision-makers who seek to maximize their own self-interest, and that markets are efficient and tend towards equilibrium.
The neoclassical approach to economics emphasizes the role of supply and demand in determining prices and resource allocation. It assumes that individuals have perfect information, make decisions based on rational calculations, and respond to incentives. The neoclassical framework is used to analyze a wide range of economic phenomena, from consumer behavior and market competition to macroeconomic trends and international trade.
Neoclassical economics has been criticized for its reliance on unrealistic assumptions and for its failure to account for issues like market power, externalities, and imperfect information. Despite these criticisms, it remains a dominant approach to economics and has been influential in shaping economic policy and public discourse.