Chapter 2

The Neoclassical Perspective

The "neoclassical" school of thought has been very influential in all branches of economics, and especially in microeconomics. This chapter reviews some ideas from neoclassical economics which have been adopted throughout much of economics, and which are fundamental for the rest of this book.

You Need to Know

To understand this chapter, you will need some concepts from chapter 1.

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Contents

  1. Introduction
  2. Neoclassical Assumptions:
  3. Models
  4. Scarcity
  5. The Production Possibility Frontier
  6. Opportunity Cost
  7. Fundamental Questions of Economics
  8. Summary of the Model
  9. A Surprise Application
  10. Chapter Summary

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