Economics as economy and science

Economics - a word that is of ancient Greek origin. It arose because of the combination of the words "economy" and "law". And if before it was largely based on philosophy, it is now a full-fledged science that has theoretical and applied parts. Since the inception of the concept itself, it has been able to significantly enrich and change. So let's find out what the economy is like as an economy and science.

Modern interpretation

Economics as an economy is characterized primarily by objectivity. In a broad sense, this is a collection of all categories, material and intangible, that are used by people to meet the needs. Economy as an economy is a life support system created and maintained by a person to maintain his own existence and raise its level.

Now let's look at the economy as a science. In this case, it is a collection of available knowledge about the productive activities of people. She studies the use of resources to meet life needs in terms of their limitations, as well as the attitudes that arise during the management process. As the last interest are the processes of production, distribution, exchange and consumption of goods.

Summing up the aforesaid

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 assert that there is one definition, and it is certainly true, it is impossible. The economy as a science and economy is considered by different people in different conditions and with different luggage of experience and knowledge. Therefore, it is possible to meet many interpretations of the definition. Some states fix the terminology base in the standardizing documentation, others do not do anything.

Theory

The economy is engaged in the study of a certain aspect of society. Due to this, it is closely connected with a number of social sciences: history, sociology, psychology, jurisprudence, political science and others. The economy is also widely used in mathematical calculations, quantitative methods of research, to improve the results, analysis is used. As an example of complexity, its relationship with jurisprudence can be cited. Important for public relations is their regulation by the law, as well as the definition of the order of various actions (for example, company registration). In this case, the work goes with abstract concepts.

The transition from theory to practice

An important aspect is the allocation in the economy as a science of a number of disciplines: the economy of agriculture, labor, industry and so on. Therefore, before it, there are such goals (research categories):

1. The main task is to search for opportunities to effectively manage the economy. Also, optimal mechanisms for using resources are developed, taking into account that they are limited (and the needs are unlimited).
2. The subject of research is economic relations, links, interdependencies that arise as an element of the economy in the process of its development.
3. An essential feature is that the rate is placed on functional links, rather than on cause and effect.

Economics as a science performs a number of functions:

1. Cognitive.
2. Methodological.
3. Educational.
4. Ideological.
5. Practical.

There are also two levels of analysis that apply in this area:

1. Macroeconomics. It is a science that studies the economy as a whole. Her sphere of interest includes 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 subjects are the state, the firm, the household.
2. Microeconomics. It is a science that studies the behavior of consumers, firms and individual industries. It considers such problems as limited resources, alternative cost, price, choice, changing supply and demand of individual goods in specific markets, and so on. The main subjects here are firms and households.

Let us now turn to the practical component and find out what the economy is like as an economy. This is the concept of what order?

System of social production

It is engaged in providing people with material conditions for living - housing, food, clothing, medical products and so on. Here are several important aspects:

1. Production. This is a process during which economic goods and services are created.
2. Distribution. The product or income is distributed among people who participate in its production or receipt.
3. Exchange. This is a process where, instead of a product, a person receives money or another product / service.
4. Consumption. This is the stage of using or destroying the product.

The economy as an economy is illustrated by the fact that it creates goods or services, which are subsequently distributed through all the different mechanisms among all members of society and used.

Problems

When the economy is considered as a science and economy, it is difficult to ignore unresolved issues. So, the most important problem is the satisfaction of the ever growing (unlimited) needs of people, while there is a certain reserve of resources that does not increase. And while a person has needs. This is what the need for something that is needed to support and vitalize society and the individual and their development is called. Human needs can not be ignored, since such actions have negative consequences. The necessity of housing, food, various material benefits for a person is obvious. Therefore, various economic benefits are of great importance . They are means that satisfy human needs. True, they exist in a very limited number. This is due to the fact that they are created thanks to resources that are also not unlimited. The latter in the economy are also called production factors.

Conclusion

Here we also considered this concept. Economics as an economy and as a science are two interrelated concepts united by a common content. This discipline is very complex and deserving of respect. It is necessary for building a stable society. For this, it is necessary that everyone who studies it does their work on the conscience both in the learning process and in the workplace. And it is necessary not just to memorize, but to ponder, reflect and even argue (if there is an argument).