Economics is a word of ancient Greek origin. It arose due to the combination of the words "economy" and "law". And if earlier it relied heavily on philosophy, now it is a full-fledged science that has theoretical and applied parts. Since the emergence of the concept itself, it has been able to significantly enrich and change. Therefore, let's find out what is the economy as an economy and science.
Modern interpretation
Economics as an economy is characterized primarily by objectivity. In a broad sense, it is the totality of all categories, tangible and intangible, which are used by people to satisfy existing needs. Economics as an economy is a
life support system created and exploited by man to maintain his own existence and increase his level.
Now let's look at economics as a science. In this case, it is the aggregate of existing knowledge about the production activities of people. She studies the use of resources to provide for vital needs in terms of their limitations, as well as the relationships that arise during the business process. As the latter, the processes of production, distribution, exchange and consumption of goods are of interest.
To summarize the above
So, the economy is both an economy and a science about it, as well as about the relationships that arise between people during production processes. To say that there is one definition, and it is certainly true, is impossible. Economics as a science and economy is considered by different people in different conditions and with different baggage of experience and knowledge. Therefore, there are many interpretations of the definition. Some states fix the terminological base in standardizing documentation, others do nothing of the kind.
Theory
The economy is studying a certain side of society. Thanks to this, it is closely connected with a number of social sciences: history, sociology, psychology, jurisprudence, political science and others. Also, economics widely uses mathematical calculations, quantitative research methods, and analysis is used to improve the results. An example of complexity is its connection with jurisprudence. Important for public relations is their regulation by the law, as well as determining the order of various actions (for example, company registration). In this case, work is going on with abstract concepts.
Transition from theory to practice
An important aspect is the allocation within the economy as a science of a number of disciplines: the economics of agriculture, labor, industry, and so on. Therefore, she has such goals (categories of research):
- The main task is to find opportunities for effective farming. Optimal mechanisms for the use of resources are also developed, given that they are limited (but the needs are unlimited).
- The subject of research is economic relations, relations, interdependencies that arise as an element of the economy in the process of its development.
- An essential feature is that the emphasis is on functional relationships, and not on causal ones.
Economics as a science performs a number of functions:
- Cognitive.
- Methodological.
- Educational.
- Ideological.
- Practical.
There are also two levels of analysis that apply in this area:
- Macroeconomics. It is a science that studies the entire economy. Her interests include the economic health of the whole world and individual countries. She is interested in issues of employment, unemployment, economic growth, inflation and so on. The main actors are the state, the company, the household.
- Microeconomics. This is a science that studies the behavior of consumers, firms and individual industries. She considers problems such as limited resources, opportunity cost, price, choice, changes in the supply and demand of individual goods in specific markets, and so on. The main actors here are firms and households.
Let us now turn to the practical component and find out what constitutes the economy as an economy. What is the concept of this order?
Social production system
She is engaged in providing people with material conditions for existence - housing, food, clothing, medical supplies and so on. Several important aspects stand out here:
- Production. This is the process during which economic goods and services are created.
- Distribution. The product or income is distributed between people who participate in its production or receipt.
- Exchange. This is a process where, instead of a product, a person receives money or another product / service.
- Consumption. This is the stage of using or destroying the product.
The economy as an economy is illustrated by the fact that goods or services are created in it, which are subsequently distributed among all participants of the society and used by various mechanisms.
Problems
When considering economics as a science and economy, it is difficult to ignore unresolved issues. So, the most important problem is meeting the constantly growing (unlimited) needs of people, despite the fact that there is a certain supply of resources that does not increase. And while this person has needs. So called the need for something that is needed to support and support the life of society and the individual and their development. Human needs cannot be ignored, since such actions entail negative consequences. The need for a person to have housing, food, various wealth is obvious. Therefore, various
economic benefits are of great importance
. They are means that satisfy human needs. True, they exist in very limited numbers. This is due to the fact that they are created thanks to resources, which are also not unlimited. The latter in the economy are also called factors of production.
Conclusion
So we have considered this concept. Economics as an economy and as a science are two interconnected concepts, united by a common content. This discipline is very complex and worthy of respect. It is necessary to build a stably developing society. For this, it is necessary that everyone who studies it should do their job conscience both in the learning process and in the workplace. Moreover, it is necessary not only to memorize, but to ponder, reflect and even argue (if there is an argument).