What is Economy Object of study and Types of economy


Economy(or  Economic Sciences ) is a social science whose field of interest is constituted by the ways in which a society organizes itself to meet its material and immaterial consumption needs through an ideally perpetuated cycle of production, distribution and exchange of assets. over time .

It is the study of ways of organizing and distributing scarce goods that each society needs and, therefore, produces or acquires through different strategies , in order to meet as much as possible the demand for a finite number of assets. tangible or intangible.

That said, we can deduce that Economy seeks to understand the production and consumption processes of any human group, in order to aspire to an ideal distribution and management of resources. This allowed him to apply himself in various areas of study and work with other specific disciplines such as Law , Administration , Business , Politics , War , Sciences and a long etc.

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

Economic systems:

  • Capitalism
  • Socialism
  • communism

Object of study

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

  • The processes of extracting, producing, distributing , exchanging and consuming the goods and services that a society needs.
  • The possible models for satisfying 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, Economy is interested in a very wide range of objects of study, ranging from the pricing mechanisms of goods and services available in a community , the behavior of financial markets and their impact on society, international trade , State intervention in domestic markets, income distribution and methods of combating poverty , theories of growth and economic cycles and their impact on the societies that carry them out.

Types of economy

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

  • Theoretical Economy and empirical Economy. The first seeks 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.
  • MicroEconomy and MacroEconomy . The first refers to the choices of economic agents (individuals, companies and governments ) to meet their needs and scarcity. The second, on the other hand, sees the economy as a national, if not global and international, system that analyzes trade balance totals, general trends and data at a panoramic level.
  • Normative Economy and positive Economy. This distinction is based on the fact that the first considers the duty of the economy, while the second studies economic behavior as something alive and present, in change.
  • Orthodox and heterodox Economy. 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 currents of economic analysis and prefers an approach based on institutions-history-social structure.

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