Any business and any activity should be based on economic knowledge. Only the ability to analyze the activities of an economic entity in the current market situation will allow you to reach the effective and profitable work of the organization. That is why any leader, manager, and, of course, an economist must know the basics of economic theory. After all, exactly what all modern commodity-money relations are based on, the principles of the market and models of its development lie in the teachings of great people who have proved on paper and practice the need for knowledge and knowledge of the basics of planning and analysis.
The fundamentals of
economic theory include a huge number of questions characterizing the emergence, formation and development of economic thought and the economy as a whole from different points of view. The beginning of the process of the origin of this science was laid by ancient philosophers - Aristotle and Xenophon. It was they who first used the term “saving”. This word has Greek roots and at that time meant the science of housekeeping.
The teachings and thoughts of Xenophon were rethought already by medieval men. The first of these was Montretien, representing the very first economic school - the school of mercantelism. In the ranks of the adherents of this trend, economics has come to be seen as a set of laws by which not only the home, but the entire social economy as a whole is developing.
The physiocrats (Quesnay and Turgot), who see agriculture as a source of basic and undeniable income, made their contribution to the foundations of economic theory. The classical school studied political economy on the basis that this science is based on the foundation laid by the theory of labor value. Moreover, its founders (Smith and Ricardo) saw the main source of enrichment in production and free market relations.
Of course, a huge role in the development of the basis of economic theory was played by the leaders of such a trend as Marxist political economy. Its most prominent representatives and founders - Marx and Engels - argued that the heyday of society - in socialism, in complete renunciation of capitalist manners and in the rule of state power, freely and legally elected by the people.
The term “economics” was introduced by the representative of the neoclassical school Marshall. It was he who began to consider and study the principle of formation of the market price and the factors influencing it. Adherents of this theory analyzed the interaction of supply and demand as a relationship between seller and buyer, their behavior and psychological factors affecting their choice.
Keynes (the founder of the Keynesian school) amends the principles of economic theory founded by the neoclassicists, believing that the market mechanism cannot be self-regulatory - for its healthy growth and development, government intervention in the form of budgetary and monetary policy is necessary. A follower of this trend was the institutional direction, which developed the theory of post-industrial society.
It is safe to say that any school considers economics from one side that is more convenient for them, therefore, in their teachings there are idealistic aspirations that cannot exist without separation from other significant components. No doctrine can be fully adapted to current conditions, therefore, modern economic theory is the totality of all views, complemented by a variety of facts, theories and axioms.