Equilibrium: Classical And Neoclassical Economics

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Equilibrium: Classical and neoclassical definitions of equilibrium are fundamentally different. In classical economics, equilibrium occurs when (given) savings are equal to investment. Equilibrium is a function of exogenously given levels of wages and interest. In neoclassical economics, equilibrium occurs at the intersection point of the supply and demand curves, which are in turn determined by the rational, optimizingbehavior of the agents seeking to maximize utility subject to scarcity and participating in the full set of markets in the economy. The standard neoclassical economic paradigm is the “competitive equilibrium” where given an initial set of asset-endowments for individuals (talents, skills, capital), financial, labor and product markets will, subject to certain conditions, operate to set prices so that all supplies and demands balance, and no one could be made better off without another being worse off (“Pareto optimality”). Framework of the Study The poverty alleviation programs of the government are PantawidPamilyang Pilipino Program (4Ps), Students Grants in Aid Program for Poverty Alleviation (SGP-PA), Social Pension Program, supplementary Feeding Program and the Sustainable Livelihood Program. The SGP-PA is a form of affirmative action, a type of…show more content…
Majority of studies are from the United States (US) and are race-based affirmative action. Such affirmative actions in place are not for Latinos and for those black Americans (Alon, et al., 2005). More similar to class-based affirmative action is that implemented in India, which is caste-based affirmative action. The approach in India is twofold – first, specific quotas are reserved for lower-caste members of society (the dalits and adivas) and the second, programs to reduce the cost of education such as the provision of scholarships, fellowships and other necessary school materials are implemented (Desai., et al.,

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