Fundamentals of economic theory as the basis for effective activities of any kind

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 for effective and profitable work of the organization. It is for this that any manager, manager and, of course, an economist should know the basics of economic theory. After all, exactly what all modern commodity-money relations are based on, the principles of the market and the models of its development lie in the teachings of great people who proved on paper and practice the need for knowledge and mastery of the elements of planning and analysis.

Fundamentals of economic theory include a huge number of issues that characterize the emergence, formation and development of economic thought and the entire economy as a whole from different points of view. The beginning of the process of the birth of this science was laid by ancient philosophers - Aristotle and Xenophon. It was they who first used the term "economy". This word has Greek roots and at that time implied the science of housekeeping.

Xenophon's teachings and reflections were reinterpreted already by medieval men. The first of these was Montchretien, who represented the very first economic school - the school of mercantilism. In the ranks of adherents of this trend, the science of economy began to be viewed as a set of laws, according to which not only the home economy but all social economy as a whole is developing.

His contribution to the foundations of economic theory was made by the Physiocrats (Quesnay and Turgot), who regard agriculture as a source of basic and indisputable income. The classical school studied political economy proceeding from the fact that this science is based on the foundation laid by the theory of labor value. At the same time, its founders (Smith and Ricardo) saw the main source of enrichment in production and free market relations.

Of course, the great role in the development of the foundations of economic theory was rendered by figures of such a trend as Marxist political economy. Its most prominent representatives and founders, Marx and Engels, maintained that the flowering of society was in socialism, in total renunciation of capitalistic manners and in the government of the state, freely and legally chosen by the people.

The term "economics" was introduced by the representative of the neoclassical school Marshall. It was he who began to examine and study the principle of the formation of the market price and the factors that affect it. Adherents of this theory analyzed the interaction of supply and demand as a relationship between the seller and the buyer, their behavior and the psychological factors that influence their choice.

Keynes (the founder of the Keynesian school) amends the principles of economic theory founded by neoclassicists, believing that the market mechanism can not be self-regulating - for its healthy growth and development, state intervention in the form of budgetary and monetary policy is necessary. The follower of this trend was the institutional direction that developed the theory of post-industrial society.

It can be confidently asserted that any school considers the economy from one more convenient side, that is why their teachings contain idealistic aspirations that can not exist without separation from other significant components. No one doctrine can be fully adapted to the present conditions, therefore modern economic theory is a set of all views supplemented by various facts, theories and axioms.