What are the 3 Major Theories of Economics

By Ritika Pant|Updated : October 7th, 2022

The 3 major Theories of Economics are Keynesian economics, Neoclassical economics, and Marxian economics. Economics is a type of social science that focuses on the many aspects of goods and services including their production, distribution, and consumption. Key principles of economics focus on trade and labor and also on how people, governments, and businesses choose the allocation of resources. Some additional principles of economics are monetarism, institutional economics, constitutional economics, etc.

 3 Major Theories of Economics

The 3 major theories of economics have the following meanings and responsibilities. Have a look at them and understand each one in detail.

  • Keynesian economics: This type of economics includes a number of macroeconomics models and theories explaining aggregate demand, the expenditure of the economy as a whole, and how it affects economic productivity and growth.
  • Marxism Economics: Marxism focuses on how capitalism has affected growth, efficiency, and employment. There are two socioeconomic classes in particular: the bourgeoisie (the ruling class) and the proletariat (the working class).
  • Neoclassical Economics: The principles of neoclassical economics are used as a hypothetical framework for the description of the popular expected properties of capitalism, in which market prices fluctuate as demand and supply change ability to reach equilibrium.

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FAQs on 3 Theories of Economics

  • Keynesian economics, Neoclassical economics, and Marxian economics are the three major theories of the economy.

  • Apart from Keynesian, Marxism, and Neoclassical economics, which are the 3 major theories of Economics, some other theories of economics are monetarism, institutional economics, constitutional economics, and more.

  • The 3 major theories of Economics have the following roles. Keynesian Economics involves several macroeconomics models and theories explaining the collective demand, Marxism focuses on how capitalism has affected growth, efficiency, and employment, whereas Neoclassical economics is used as a hypothetical outline for a description of the popularly expected merits of capitalism.

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