Economics

Classical theory revolved on markets, and it is regarded as among the first economic though of modern school theories. It postulated that markets were to operate freely to ensure that the economies prosper. Some of the renowned developers of this theory include David Ricardo, Adam Smith, and Thomas Malthus, who were able to formulate numerous laws that tended to ensure economies operated efficiently. Most of the laws that are championed by classical economical theory are based on the theme of economy tendency towards a state that is stationary, and ensuring economic growth is sustained. Laws that are common and utilized by classical economic theory includes (Rima, p. 186)
Law of value (Rima, p. 186)  is based on the Adam Smith problem that those commodities frequently available has greatest value in use usually has relatively little value in exchange while products that are infrequently utilized have a higher value in exchange e.g. diamond. Moreover, value theory is associated with supply and demand philosophy, and tends to shape the outcome of value in exchange (Rima, p. 187).

Law of wages  the wages received by laborers is used on the wage fund. The number of laborers dictates wages while just a few receive better wages at the expense of others (Rima, p. 187). Such an approach was biased since wages only favored some specific personnel. 

Law of capital accumulation brings into consideration savings propensities of capitalists (Rima, p. 190). Workers do not have enough to accumulate while capitalist, because of capitalist mode of operation, champions the accumulation function. They utilize these extra earnings to accumulate more through introduction of means that improves on productivity.

Law of population growth  population growth is based and controlled by the availability of subsistence (Kurz  Slavadori 67).

Law of diminishing returns the value of production or project decreases in terms of effectiveness after achieving or arriving at certain level in its tendency (Mankiw 60). This means that after utilizing a give resource for some time, its effectiveness starts to diminish and its benefits becomes obsolete. 

Law of rent  this law states that the rent of a piece of land in a specific place is equal to economic advantage through maximization on the site, against the advantage of utilizing marginal land for similar purposes while capital and inputs of labor are held constant. This means a landowner is not capable of setting land rents but he can only appropriate additional production to the advantage of the site relative to another individual basing his or her operation on marginal sites (Mankiw 56).

Law of comparative advantage  it brings into consideration international trade. The classical writers state that importing a product stabilizes prices or prevents the price from rising ensuring that both ends benefits e.g. seller and purchaser. Thus, comparative costs compare the price of international product to the cost currently at the market. Charles Babbage (Rima, p. 192) supports this view because a country can obtain competitive advantage though division of labor. He states some countries produce and export machines while they import products that are cheaper in value relative to machinery that have higher exchange value.

Law of quantity theory of money  it is based on the understanding that money prices reflects on real factors (Rima, p. 193). This means that price level s affected by money in that money prices is directly proportional to quantity of money in a country. Thus, the amount of money circulating should be equated to a standard, in that one is used to replace another. This means the price a product should be proportional to production cost.

Law of markets  also known as Says Law is based on the understanding that supply creates demand. It means that the laborers or wage earners utilize their earnings for basic requirements while capitalist utilize their earnings to improve on productivity.

The long-term goals of classical economics are two fold in that it simplifies the model of operation that reflects on the actual economic system. Secondly, it fundamentals logic provides a base in which policy of economy liberalism can be encouraged while the economy could be free fro governmental regulations (Rima, 197). Thus, it enables a system that self corrects itself, a system that is capable automatically to adjust to external factors that impact on the equilibrium. Moreover, classical economic encouraged development and shaped political theory in its operational capabilities. All these developments were aimed at ensuring businesses and economies maximizes on profit generation (Kurz  Slavadori 67).

Generally, classical economy theory was aimed at ensuring a framework is formulated to provide means in sustaining economy. This resulted in creation of laws that occurred from the nature business environment and economic position. These laws provide a better understanding of environment and means of relating functions to businesses.