Questions what is the main features of the socialist economy?

What is the main idea of the Classical school?

Key words: Free trade, Government interventions, founders.
The Classical school, which is regarded as the first school of economic thought, founders of which were the Scottish economist Adam Smith of the 18th century, and those British economists that followed, such as Robert Malthus and David Ricardo.
The main idea of the Classical school was that markets work best when they are left alone, and that there is nothing but the smallest role for Government interventions . The approach is firmly one of laissez-faire and a strong belief in the efficiency of free trade to generate economic development. Markets should be left to work because the price mechanism acts as a powerful ‘invisible hand’ to allocate resources to where they are best employed.
In terms of explaining value, the focus of classical thinking was that it was determined mainly by scarcity and costs of production.
In terms of the macro-economy, the Classical economists assumed that the economy would always return to the full-employment level of real output through an automatic self-adjustment mechanism.
It is widely recognised that the Classical period lasted until 1870.

102. 
     Describe the evolution of Capitalism!
     

Key words: medieval era, criticism, founders, economic system, ownership.
Capitalism, also called free trade economy or free enterprise economy, economic system, dominant in the Western world since the breakup of feudalism, in which most means of production are privately owned and production is guided and income distributed largely through the operation of markets.
In the medieval era, money could represent and convert only things that existed in the present. This imposed a severe limitation on growth, since it made it very hard to finance new enterprises.
Humankind was trapped in this predicament for thousands of years. As a result, economies remained frozen.
Capitalism began as a theory about how the economy functions. It was both descriptive and prescriptive – it offered an account of how money worked and promoted the idea that reinvesting profits in production leads to fast economic growth. But capitalism became far more than just an economic doctrine. It now encompasses an ethic – a set of teachings about how people should behave, educate their children and even think.
Its principal tenet is that economic growth is the supreme good, or at least a proxy for the supreme good, because justice, freedom and even happiness all depend on economic growth.
Although the continuous development of capitalism as a system dates only from the 16th century, antecedents of capitalist institutions existed in the ancient world, and flourishing pockets of capitalism were present during the later European Middle Ages. The development of capitalism was spearheaded by the growth of the English cloth industry during the 16th, 17th, and 18th centuries. The feature of this development that distinguished capitalism from previous systems was the use of accumulated capital to enlarge productive capacity rather than to invest in economically unproductive enterprises, such as pyramids and cathedrals. This characteristic was encouraged by several historical events. The founder of Capitalism believed to be Adam Smith.

103.