Neoclassical economic theory: essence and characteristics

Neoclassical economic theory is the predominant direction of economic science in the twentieth century. It emerged from classical political economy. The mechanism of functioning of market economy became the prerogative of neoclassical economic theory. Proponents of this theory focus on the independent economic activity of individuals and advocate limited government intervention in the market economy. For this theory, the principles of rational egoism and the "invisible hand" became the basis for genuine scientific analysis.