Economy
Economy
The economy can
be framed within the group of social sciences since it is dedicated
to the study of the productive and exchange procedures , and to
the analysis of the consumption of goods (products) and services . The
word comes from the Greek and means "administration of a house or
family" .
In 1932, the
British Lionel Robbinsprovided another definition of economic science,
considering it as the branch that analyzes how human beings meet their unlimited
needs with scarce resourcesthat have different uses. When a man
decides to use a resource for the production of a certain good or service, he
assumes the cost of not being able to use it for the production of a different
good or service. This is called opportunity cost. The function of the
economy is to provide rational criteria so that the allocation of resources is as
efficient as possible.
Broadly
speaking, two philosophical currents can be mentioned regarding the
economy. When the study refers to postulates that can be verified, it is
a positive economy . On the other hand, when you take into
account statements that are based on value judgments that can not be verified,
we speak of normative economics .
For the
German Karl Marx , economics is the scientific discipline that
analyzes the relations of production that occur within society. Based on
historical materialism, Marx studies the concept of value-work that
postulates that value has its objective origin according to the amount of work
necessary to obtain a good.
It should be
noted that there are numerous schools of economic thought, which present
different approaches to analysis. The mercantilism , the moneratismo ,
the Marxism and Keynesianism are some of them.
The word
"economy" has many uses that allow it to be linked to different
aspects of trade exchanges or supply-demand relationships that exist. Some
of these meanings are:
Sustainable
economy , also known as sustainable development, is a new term that has
become fashionable in recent years and that involves a social life project
based on the reuse of raw materials for various purposes. It is about
changing the productivity process based on an economy based on caring for the
environment and improving the quality of life of a society. Basically it
seeks to satisfy the needs of the generations that are living in a certain time
space without putting at risk the subsistence or the economic possibilities of
future generations.
Business
economics is the way in which an organization can manage its resources and
services, offering a competitive vision in front of the market. It uses
several scientific disciplines that allow carrying out this work. It is a
way of applying economy in the scope of a company and external values such as
stock market indexes, market demand and other variables must be taken into
account for its proper functioning.
Natural
economy as defined by the biologist MT Ghiselin, is the study of the
consequences that scarcity causes in living beings. Propose an in-depth
analysis of human actions and their side effects in the environment.
Political
economy is the study of human behaviors, examined within a characteristic
legal context. Political economy is related to the natural economy in that
human actions, its political economy can affect the natural environment,
positively or negatively, the interaction of living beings with the environment
always modifies it.
Mixed
economy is a system of commercial exchange that is not totally
free, where the state is in charge of setting certain norms that allow a
balanced distribution of profits among the different merchants of that economic
system.
The market
economy is a social system where the factors that influence are the
division of employment, of goods and services and the interaction between the
entities that make up a society. It is a free system of prices fixed by
demand and supply. It is an absolutely free economic system, where those
who intervene in the buying and selling exercise set the conditions. There
is no country today where commercial freedom is absolute.
