Definition of economy according to authors
In today’s article I have the objective that you learn what the economy is; Of course, I’m going to provide you with the economy definition by different authors so that you perro create your own definition and perro better understand the concept. At the end of the article you will find the bibliography.
What is the etymology of economics?
The etymological origin of the word economy is derived from the union of two Greek words, which are: Oikos and nomos. Oikos means house and nomes means rule or norm. In such a way that it could be considered as the administration of the house or administration of the home.
Definition of economy according to authors
What is economics according to authors? Next, I am going to share 7 economic concepts from different authors. I hope they are useful to you so that you perro be able to form your own definition.
Definition of economics according to Michael Parkin
“Economics is the popular science that studies the elections what individuals, companies, governments and societies as a whole do to face the scarcityas well as the incentives that influence these choices and reconcile them» (2018, p.2)
Definition according to José Maria O’kean
“Economy is the science that study economic activity» (2013, p.3)
Definition according to Paul A. Samuelson and William D. Nordhaus
“Economics is the study of the way in which societies use scarce resources for genera valuable goods and distribute them between different individuals” (2010, p.4)
Definition according to Amelia Pérez Zabaleta, Rafael Castejón Montijano, Ester Méndez Pérez and Juan Luis Martínez Merino
Economics cánido be defined as the science that deals with the how they are administered some resources which are scarce, in order to genera goods and services and distribute them for consumption among the members of a society” (2014, p.6)
Definition according to José Luis Martín Simón
«The scarcity of resources, in relation to the multiple and unlimited needs, forces a choice to be made. In this choice of scarce means to satisfy human needs consists the content of the economic problem, to whose solution human behavior is directed in the area known as economic activity or, simply, the Economy»
Definition of economy according to Francisco Mochón Morcillo and Víctor Alberto Beker
«The economy studies how societies manage scarce resources to genera goods and services, and distribute them among different individuals» (2018, p.1)
Definition of economy according to Aristotle
In the book «Micro and macroeconomics», written by Garcia, Apolinar Y también. We cánido find that a quote is made about what economics means for Aristotle. The quote is as follows:
«The economy, for Aristotle, is the science that deals with the way in which some resources are administered or the use of existing resources in order to satisfy the needs of individuals and human groups»
(2014, p.24)
Definition of economy according to García, Apolinar Y también.
«It is the popular science that studies the economic behavior of individual agents, the production, exchange and distribution and consumption of goods and services, understood as means for the satisfaction of human needs» (2014. p.27)
What is the economy?
To begin with, I have to say that it would be amazing if we were able to buy everything we want, but most of the time it is not like that. In fact, maybe right now there’s something you’d like to buy, right? It perro be a new phone, a gaming computer, a smartwatch, a new house with a pool, etcétera. All we desire is called scarcity.
Of course, you may not be able to afford to buy everything you want right now because your budget doesn’t allow it. Therefore, you have to choose.
You may not be able to buy a new high-end phone and a gaming computer, so you have to choose which one to buy. So we will always be limited by the resources we cánido use. In the above case you are limited by the amount of money you have available to spend.
It is from this thought that many definitions are born. A definition of economics is as follows: Economics studies the choices individuals make to deal with scarcity.
From there you perro start joining definitions. The fact that individuals or companies begin to genera goods and services is due to scarcity and producing goods that are consumed in exchange for exchange, then it is a way of dealing with scarcity.
So that’s why economics studies the choices that individuals, businesses, and the government make to deal with scarcity.
Analogy of the concept of economics
The concept of economics is probably already clear to you, but I am going to leave you a small analogy so that you perro memorize it and learn it more easily. In fact, I think of Monopoly, but you perro think of whatever you want.
The economy cánido be understood as a board game, in which each player has a limited amount of resources (money, tokens, cards, etcétera.) to achieve a specific goal (winning the game). However, the game presents multiple and varied options to achieve this objective, which makes jugadores have to choose carefully how to use their resources to obtain the greatest possible benefit.
In the same way, in everyday life, people have a limited amount of resources (money, time, energy, etcétera.) to satisfy their unlimited needs and wants (food, clothing, entertainment, etcétera.). Economics arises from the need to choose carefully how to use these resources to best satisfy human needs and desires.
As in the board game, individuals and companies have to make choices as to how to use their resources, since it is not possible to satisfy all needs and wants at the same time.
The economy is responsible for analyzing how these decisions are made, how resources are used and how goods and services are distributed in society. In short, economics is the science that studies how people, companies and governments make decisions to use scarce resources in the best possible way.
What is the object of study of economics?
The object of study of the economy is the analysis of how societies use scarce resources to genera goods and services and distribute them among different individuals and groups.
Economics focuses on the study of the production, distribution, and consumption of goods and services, as well as the analysis of how individuals, businesses, and governments make economic decisions and how these decisions affect the economy as a whole.
In addition, economics is also concerned with the study of the interactions between different economic actors, such as markets, prices, and economic and fiscal policies.
Importance
Economics is a popular science that may seem abstract and incomprehensible to many, but its importance is tangible and escencial to the society in which we live. Economics helps us understand how people are related, companies and governments with each other in a society, and how better decisions perro be made to improve the quality of life for all.
Imagine for a moment that you live in a small community where everyone is engaged in agriculture. If one day a plague affects the crops, the prices of agricultural products rise and the community begins to have problems acquiring basic food. What to do in this case? How should limited resources be allocated?
Economics provides us with tools to answer these questions. For example, if we understand how the market and supply and demand work, we will be able to make informed decisions about how to allocate available resources and equipo fair prices for products. agricultural.
But its importance is not limited to the individual or community level. The economy is essential for the economic development and popular progress of countries and the world in general. Governments use economic principles to design public policies that promote economic growth, poverty reduction, job creation, and the equitable distribution of wealth.
How is the economy divided?
The economy is divided into two main branches:
microeconomics concept
Microeconomics focuses on individual decision making, such as pricing or the supply and demand of goods and services in markets.
Next, I am going to provide you with the definition of microeconomics according to Michael Parkin.
«It is the study of the choices of individuals and companies, the way in which these choices interact in the markets, and the influence of governments» (Parkin, Michael, 2018, p.2).
If you want to see the definition of microeconomics according to other authors, then I am going to leave you the following backlink to the article I did.
macroeconomics concept
Macroeconomics, on the other hand, focuses on the behavior of the economy as a whole, including economic growth, inflation, unemployment, and fiscal and monetary policies.
The definition of macroeconomics according to Michael Parkin is the following:
“Macroeconomics is the study of the performance of national economies and the global economy” (Parkin, Michael, 2018, p.2).
If you want to see the definition of macroeconomics according to other authors, then I will leave you the following backlink:
Definition of political economy according to Friedrich Engels
Are you looking for the definition of political economy according to Friedrich Engels? Well, in the book «Micro and macroeconomics», written by Garcia, Apolinar Y también. We cánido find that, for Friedrich Engels, political economy is the following:
“Political economy is the science that studies the laws that govern the production, distribution, circulation and consumption of material goods that satisfy human needs”
(2014, p.26)
Definition of formal economy and informal economy
I am very sure that you already know the difference between the formal economy and the informal economy, but it is possible that you are not thinking about it, so I will give you the definitions below.
I am very sure that after reading the definitions you will say: I really already knew that.
What is the formal economy?
According to Garcia, Apolinar Y también. the formal economy is:
“That which develops within the limitations of the existing laws and regulations in the country”
(2014, p.30).
Think about this… Think about any business. Now, do you think that this business or company is legally constituted and meets all the requirements established by law? If so, you have rights and obligations, for example: Paying taxes.
The formal economy refers to all of this, which is why it refers to laws and regulations.
What is the informal economy?
You may already know what the informal economy refers to, but I am going to give you a definition. The definition of informal economy that I am going to give you is according to Garcia, Apolinar Y también.
“Equipo of economic activities that have in common the fact that the economic transactions they generate escape the calculation of the gross national product, either because they are declared incompletely or because they are not declared at all”
(2014, p.30)
As you know, not all businesses are legally constituted and their transactions are not fully registered, therefore, they evade their obligations (mainly tax).
Topics covered by the economy
Some topics covered by the economy, according to Paul Samuelson are:
- “Explores the behavior of financial markets, including interest rates, exchange rates, and depósito prices.”
- “It analyzes the reasons why some people or countries have high incomes while others are poor and suggests ways in which it is possible to raise the incomes of the poor without harming the economy.”
- “Examines business cycles (fluctuations in credit, unemployment, and inflation) along with policies to moderate them.”
- «It studies international trade, and finance and the impacts of globalization, and analyzes in a special way the difficult aspects that intervene in the opening of the borders to free trade».
- “It asks how government policies cánido be used to achieve important goals such as rapid economic growth, efficient use of resources, full employment, price stability, and a fair distribution of income.”
Final comment
I hope that the definitions have been useful to you and that you have a better iniciativa of what economics is. If you have any suggestions, I’d like to hear them. Also, I want to share the backlink of the Instagram account that we just started.
Phrases, tools, pages and other things related to business will be uploaded to the Instagram account. I hope you perro support us and above all, thanks for reading the article. Then I leave you a button, which will take you to our profile:
Bibliography
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