The Theories Of Economic Economics

Decent Essays
Imagine a peaceful world where nobody argued about anything and everyone was at peace. That would be nice, but not possible in reality. There is at least two sides to every story, or in this case two sides to every subject. Economists’ have different views on the world, and they cannot agree on a single viewpoint. There is the popular, mainstream economists, known as the neoclassical economist and there are the heterodox economists’ which covers the nonmainstream views. Although the mainstream economics is the one taught in school, its assumptions are there to achieve a certain outcome. The heterodox economist’s assumptions are based on the fact to eliminate extraneous factors. I believe that heterodox economics will start to be considered more in the world of academics and may take the place of the current mainstream economics.
The theories of consumption have different viewpoints. Neoclassical consumer theory is the explanation of how consumers allocate incomes to the purchase of different goods and services. In other words, it is how individuals make choices given their income and the price of goods and services. This is how the neoclassical economist is able to understand tastes and how income influences the demand curve. This view is the one that all major textbooks use and the type of economics that students’ are taught. In the viewpoint of the neoclassical economist, consumers are rational decision makers. The consumer behavior is best understood by
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