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B/ KEYWORD EXPLANATIONS

1. Classical Economics

An 18th-19th century school founded by Adam Smith focused on how markets and capitalism operate through concepts like the invisible hand, emphasizing free markets and minimal government intervention.

2. Neoclassical Economics

A 19th-20th century school based on marginal utility theory, rational choice theory and equilibrium analysis which formalized economics as a deductive mathematical science grounded in optimization.

3. Marxian Economics

A radical critique of capitalism pioneered by Karl Marx, analyzing class conflict, labor exploitation, historical materialism, crisis tendencies in capitalism, and advocating revolutionary socialism.

4. Institutional Economics

A school focused on studying how socio economic institutions like laws, culture, and social conventions shape economic behavior and outcomes. Pioneered by Thorstein Veblen.

5. Chicago School Economics

An influential free-market school associated with the University of Chicago that advocates laissez-faire policies, deregulation, privatization, and rejects Keynesianism based on efficient markets and rational expectations.

6. Behavioral Economics:

A school integrating psychology that studies systematic cognitive biases and limitations of rationality that impact economic decision-making and frequently lead to suboptimal outcomes.

   D/ DETAILED OUTLINE 

1. Part 1: Statement of problem or issue

• Provide a brief introduction to the economic issue under analysis

• Highlight the significance of the issue in the current context 

Examples:

Minimum wage policies are at the heart of our analysis. They represent a government intervention in labor markets, designed to set a wage floor for low-income workers. In this assignment, we will explore the economic implications of minimum wage policies and consider the perspectives of two key economic schools of thought: neoclassical economics and Keynesian economics.