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Classical Economics refers to the body of economic thought that emerged in the 18th and 19th centuries, primarily in the works of economists such as Adam Smith, David Ricardo, and John Stuart Mill. It emphasizes the importance of free markets, limited government intervention, and the role of self-interest in driving economic activity. Classical economists believe in the concept of laissez-faire capitalism, where individuals and businesses are left to pursue their own self-interests, leading to overall economic prosperity. Key principles of classical economics include the theory of comparative advantage, the labor theory of value, and the belief in the efficacy of market forces in determining prices and resource allocation.