The development of modern society is determined by the level of formation of its economic system. Therefore, much attention is paid to the study of this science. It affects almost all spheres of human activity, therefore, the concept of economics must be considered in more detail.
Knowing the features, the sphere of influence of this science, one can find ways to eliminate both global and particular constraining factors. Today, the basic concepts of the economy are given increased attention.
Origin
The concept of economics began to develop in ancient times. The very name of this science was introduced into everyday life by Aristotle. It consists of two parts. “Oikos” means economy, and “nomos” means law. Consequently, the economy is translated as the laws of housekeeping.
Since 1615, political economy has been studied. This science investigated the patterns of processes in a developing industry. Today, economic theory deals with the problems of developing a market economy. She is associated with many social disciplines.
In the old days, every household provided itself with almost all means of subsistence. Then, people increasingly began to exchange material goods. With the development of production, practically no households remained that would provide themselves with everything necessary on their own. The importance of the economy today is therefore very great.
Group of Economic Sciences
The importance of the economy has been given great attention over the years. Many scholars of the past looked at it from different angles of view.
Today, the concept of economics is considered in three aspects. The following groups of sciences are distinguished:
- General methodological investigate the basic laws of development. This group includes political economics, economic history and the history of economic doctrines.
- Industry. The subject of their study are individual areas of the national economy.
Functional - this is finance and credit, economic statistics, labor economics, accounting.
Each of these areas explores its area of economic reality. But all together they allow us to cover the role, functions, problems of the development of the national economy.
Functions
The role of the economy is difficult to overestimate. It is designed to perform a number of functions. The first of these is a methodological approach to the study of ongoing processes. With the help of logical, strictly consistent techniques, science determines development trends.
The theoretical function determines the deep essence of events and processes. Another vocation of this science in the development of society is the development of measures and approaches to housekeeping rationally. Based on sound scientific approaches, the economy contributes to the assessment of constraining and stimulating factors.
This makes it possible to look critically at the system of housekeeping. Based on these findings, it becomes possible to make a forecast and adjust the factors of influence on the overall result.
Main categories
The basic concepts of the economy lie in the plane of economic activity of society. They consist in the production, distribution, exchange and consumption of material assets. Moreover, the needs of society are endless, but resources are limited.
Therefore, the production process involves the manufacture of a certain amount of material goods, services. Distribution consists in sharing income between all entities involved in its creation.
Exchange is also one of the main economic categories. It involves receiving money or goods for manufactured products. Consumption consists in prolonged use or destruction of created goods.
The basic concepts of the economy are reduced to such categories as production, goods, services.
Economic problems
The main problems of the economy have been identified for a long time and are relevant today. This is the satisfaction of the ever-growing, unlimited needs of society in the face of limited existing resources.
In a market economy, balance adjustment occurs under the influence of supply and demand. The need is expressed in the need for any good to support life, development of the individual and group of people.
For this, various material values are produced, services are provided. The main problems of the economy indicate limited resources, so the needs of people are ranked. First of all, material needs are satisfied, then moral and spiritual.
The main issues of economics
Solving the main problems of the economy, society moves in two ways. This is an extensive and intensive development. In the first case, to meet the needs, the area is expanding, more and more new resources are involved in production.
The modern concept of economics considers possible intensive development paths. To meet its needs, society improves, improves production technology. At the same time, from the previous amount of resources, it is possible to create wealth in greater quantity and better quality. Production is done deliberately. At the same time, answers to the main questions are found: what, how and for whom to create.
Economic systems
Different systems solve the main issues of economics differently. This farming device is traditional, centralized, market or mixed.
In the first case, the exchange is based on the natural. The traditional system existed in the pre-industrial era. New technologies are not used.
A centralized economy addresses production issues through planning. The state sets the enterprise a number of tasks that must be completed on time.
The concept of a market economy lies in the field of commodity production. Here, all processes proceed under the influence of supply and demand. The rules of the game are determined by the market. In this case, the state either does not control the processes at all, or intervenes insignificantly. Private property predominates.
Today, all these systems are not found in their pure form. Some features are more pronounced, and some less. This is a mixed economy. It allows with a reasonable approach to maximize the positive qualities of each system and reduce the negative aspects.
Having considered the concept of economics, we can conclude that it affects today almost every area of people's lives. This science contributes to the development of the welfare of society, so its value is simply enormous.
