economy

We explain what economics is and what is its object of study. In addition, its importance and the different branches or types of economy.

Among others, economics studies the behavior of financial markets.

What is the economy?

The Economy (orEconomic Sciences) is a social science whose scope of interest is constituted by the ways in which a society organizes itself to satisfy its material and immaterial needs for consumption, through a cycle of production, distribution and exchange of goods that ideally perpetuates itself in the weather.

Economics, in other words, is the study of the modes of organization and distribution of scarce goods that each society requires and therefore produces or acquires through different strategies, so as to satisfy the greatest amount of demand from a finite number of tangible or intangible assets.

Said like this, we could deduce that the Economy tries to understand the production and consumption processes of any human group, in order to aspire to an ideal distribution and management of resources. This has allowed him to apply himself to various areas of study and work with others. disciplines punctual, as are the Right, the Management, the business, the politics, the war, the science and a long etcetera.

At the same time, the Economy makes use of tools and processes from various areas of knowledge, such as psychology, the philosophy, the history, etc. to help you understand the economic dynamics of societies. It is a multidisciplinary knowledge dating from the times of Classical Antiquity (especially Aristotle).

Economic systems:

Object of study of the economy

The specific object of study of Economics can be defined around three main axes:

  • The processes of extraction, production, distribution, exchange and consumption of goods and services that a society requires.
  • The possible models of satisfaction of the infinite human needs from the finite set of available resources.
  • The way people and societies survive, trade, prosper and operate financially.

In this way, the economy is interested in a very wide range of objects of study, ranging from the pricing mechanisms of the goods and services available in a community, the behavior of financial markets and their impact on society, the Commerce international, the intervention of Condition in domestic markets, the distribution of income and the methods of combating poverty, to the theories of growth and economic cycles and their impact on the societies that star them.

Types of economy

Economics is a broad and complex discipline, in which numerous types or classifications can be distinguished, such as:

  • Theoretical economics and empirical economics. The first pursues rational models of economic equilibrium and functioning for different societies, while the second confirms or refutes these models through their application or the economic history of nations.
  • Microeconomics Y Macroeconomy. The first refers to the choices of economic agents (individuals, Business Y governments) in the face of meeting their needs and scarcity. The second, on the other hand, views the economy as a national, if not global and international system, which analyzes the totals of the trade balance, general trends and data at a panoramic level.
  • Normative economics and positive economics. This distinction is based on the fact that the first contemplates the duty of the economy, while the second studies economic behavior as something alive and present, changing.
  • Orthodox and heterodox economics. A differentiation of an academic type, in which the first is anchored in the rationality-individualism-balance triad and is the most commonly taught in universities, the traditional one; while the second encompasses a different and heterogeneous set of streams of analysis economic and prefers the approach from institutions-history-social structure.
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