What are the traditional economic theories?

1, people face trade-offs. This shows that economics is to study the choice problem under the condition of scarce resources.

The price of something is to get what it gives up. The most important concept in economics-opportunity cost. ?

3. Rational people will consider marginal quantity. The most important analytical method in economics-marginal analysis. ?

4. People will respond to incentives. The background of economic analysis-the system determines people's behavior, and it should be used to guide and restrain people's behavior. ?

These four principles are about how individuals make decisions. The market economy is made up of individuals who have the freedom to make decisions. Individuals make up the whole. The starting point of economic research is personal behavior. These four principles explain how to study individual behavior. ?

Extended data:

The hypothesis of "economic man" is regarded as an important cornerstone of the establishment and perfection of the theoretical system of traditional economics, which has two connotations: first, everyone pursues his own interests, that is, everyone is selfish; Second, people are rational, calculating and have a clear understanding of their own behavior.

Economists almost agree that this hypothesis originated from and attributed to Adam Smith, but in fact Adam Smith did not directly put forward the concept of "economic man", but only included the idea of "economic man" in the "invisible hand" theory of The Wealth of Nations.

The embarrassment of economic theoretical viewpoints is often caused by different assumptions, and the "discussion" under different assumptions will not and cannot convince the other party.

Economics itself is a social and economic discipline, and economic theory can not be tested in the laboratory like natural science, but only through social practice. Without exception, the social practice test of economic theory has completely opposite test conclusions, and the cost of putting economic theory into social experiments is very likely to be too high for society to bear.

Baidu Encyclopedia-Economic Theory