QUESTION 1

Both Classical and Neoclassical political economic theories describe the market as a separate and self-generating system, independent of political agents, consisting of buyers and sellers who act in self- interest and untintensionally produce public goods. Nevertheless, Classical and Neoclassical theorists disagree that...

• the market produces social ills causing the state to intervene.
• the invisible hand is operative.
• a specialized division of labor causes the market to expand.