Question

(1) Are neoclassical economists justified when speaking of ‘natural laws’ of economics?

(2) Are poverty and inequality economic concerns? How are they being addressed by the neoclassical school of economics?

(3) is neoclassical economics a science or an ideology? What is the difference?

Answer 1

1. Yes the neoclassical economist justified when speaking of 'nature laws' of economics. Natural economic law means to natural rule that three important consumption drive the cyclic development of the economy.

2. Yes, poverty and inequality are wide spread concerns of the economy. Because they effect the social and labor market policy. In neoclassical economics, there is no concern with inequality, according to them various benefits for various production factors are regarded as fair payments for the productivity. And poverty is defined by poverty line which shows purchasing power of the country.

3. The neclassical economics is science in some sense but at the same time it is ideology.
According to neoclassical economics, the main economic problem is the restricted nature of social resources. Due to this scarcity, economics as science should examine the organization of an economy in order to create welfare by the best allocation of resources.
According to the neoclassical view, moral questions are not an object of essential economic analyses but only come into play when explicitly normative matters are considered.