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Economy

The economy can be framed within the social sciences group since it's dedicated to the study of 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 Robbins provided another definition of economic science, considering it as the branch that analyzes how human beings meet their unlimited needs with scarce resources that 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 one. 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 regarding economics can be mentioned. When the study refers to postulates that can be verified, it's a positive economy. On the other hand, when it takes into account statements that are based on value judgments that can't be verified, one speaks 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 needed 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 or supply-demand relations 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 encompasses a social life project based on the reuse of raw materials for various purposes. It's 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 meet the needs of the generations that are living in a certain temporary space without jeopardizing the subsistence or economic possibilities of future generations.

Business economics is the way in which an organization can manage its resources and services, offering a competitive vision towards the market. It uses several scientific disciplines that allow this work to be carried out. It's a way of applying economics in the scope of a company and external values ​​such as stock market indices, market demand and other variables must be taken into account for its proper functioning.

Natural economy as defined by biologist MT Ghiselin, is the study of the consequences that shortages cause in living beings. Proposing 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. The political economy is related to the natural economy in that human actions, their 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 commercial exchange system that isn't totally free, where the state is responsible for setting certain rules 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, goods and services and the interaction between the entities that make up a society. It's a price-free system set by demand and supply. It's an absolutely free economic system, where those involved in the buying and selling exercise set the conditions. There is no country today where commercial freedom is absolute.


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