- What is your understanding of the neoclassical perspective as presented by the authors? What are the assumptions about human economic behavior?
My views of the neoclassical perspective is that there is a free market. They go against government intervention or policy that distorts allocative efficiency because they believe it will harm economic growth. In other words, the market would be a continuous cycle and work its way through problems. Through human economic behavior, I believe that if prices begin to drop, and society becomes unsteady, people will take initiative and start producing goods because inputs are cheaper.
- The authors discuss what they call “Innovation Economics.” What do Atkinson and Hackler mean by innovation economics? Describe their perspective.
Atkinson and Hackler refer to innovation economics as understanding the problems occurring in society and finding solutions through innovations to help economics growth. According to the text, they strive to improve productive and adaptive efficiency, allowing an individual, an organization or firm and even broader entities, such as industries, cities, and entire nations to be more productive and innovative.