classical economics

1) *noun*; generic term for economic thought developed from 1776 to 1930, which assumed the following basic concepts: 1. all types of goods, including factors of production, can be efficiently traded in markets; 2. given free markets, all goods available for purchase will, in fact, be purchased (including labor); 3. free markets include unlimited ability of prices of commodities to move upwards or downward to ensure the quantity supplied matches the quantity demanded. *Subdivisions* Adam Smith (1723-1790), auther of *The Wealth of Nations* (