Economics is perhaps the only exact science where concepts, indicators and results have relative meanings. Right decisions have specific validity periods, at the end of which they become useless or ineffective.
In this article we will talk in detail about what is the economy and economic science, the subject of economic science, its functions.
Appearance story
The economy is a system of relationships between people and society in the process of creation, as well as the consumption of vital goods.
The subject and history of economic science are inextricably linked. Scientists believe that it all started with the realization that it is possible to systematize relations between people, rationally use resources and time, plan income and expenses for the future correctly.
The first written mention is considered to be the "Laws of Manu", dating from the 4th-3rd centuries BC. Their authors are ancient Indian thinkers. Active development took place in Ancient Greece thanks to such philosophers as Plato, Aristotle, Xenophon and others.
In a more scientific way, they began to approach economics starting from the 16-17th centuries. This was characterized by the appearance of certain currents, which deduced and proved their laws and rules. From this moment, well-known economic schools begin to form: mercantilism, physiocracy, and others. After this, a doctrine arose in the 18th century, led by Adam Smith.
His research was called the classical economic theory, which scientists adhered to for many years. In the 19th century, Marxism developed from Karl Marx emerged from these teachings. Then came the neoclassical economic theory, Kensianism, monetarism, institutionalism, etc.
The economic thoughts that are formed by current scientists are considered to be the mainstream. However, there were still no serious challenges or refutation of the thoughts of previous thinkers.
Subject of economics
Any science has its own subject of study, from which the functions, as well as research methods, flow. This is the case in this case.
The subject of economic science is the problem of finding the best use of a limited amount of resources with an unlimited number of needs of society.
We all understand that there are no and cannot be infinite resources. As for human needs, the more we have, the more we begin to want. This becomes the reason that society is forced to properly and rationally dispose of its heritage.
What are the features?
Of course, the subject and functions of economic science are interconnected, and one follows from the other. Without this, most likely, this doctrine could not stand out as a separate science from philosophy.
The main functions are:
- Theoretical.
- Worldview.
- Critical
- Methodological.
- Predictive.
Each of them contributes to the development and understanding of the value that science brings. Let us consider in more detail each of them.
Theoretical function
The economy is trying to explain the processes, as well as the phenomena that occur in the life of every person and society as a whole. Deriving patterns and relationships helps analyze events.
And this, in turn, helps to find alternative ways to solve the problems for the rational use of resources, reduce costs, and increase revenue.The search for answers to these questions is a subject of economic science.
Worldview function
Any science should form a systematic approach to the study of any issues. The second function is precisely to create a system of unified concepts on which it will be possible to rely on in the process of forming a scientific worldview.
Thanks to this, the society is armed with knowledge of mechanisms and levers of influence or changes in existing economic systems.
Critical function
This feature builds on the previous two. Thanks to the knowledge and experience gained, as well as the mechanisms of influencing the situation, learning is able to establish the facets that must be adhered to in the process of constructing the ideal model of economic behavior.
Also, the critical function is to create structures and elements that can actively influence the subjects of economic relations and indicate the appropriateness of the actions taken.
Methodological function
Thanks to the collection of information from various areas of society, the economy is able to act as a methodological basis for identifying patterns and rules for other exercises.
This is the main reason why a huge number of other sciences have grown out of the economy, for example, micro and macroeconomics, finance, etc.
Predictive function
The subject of economic science makes us not only seek the principles of the ideal use of resources to satisfy the maximum number of needs, but also forces us to make forecasts for future periods.
This function characterizes the main tasks that are set before economists of any level. After all, theoretically, it is much easier to assume what influenced the crisis situation than to create the right behavior model and carry out a forecast of economic as well as financial indicators for several periods ahead.
In conclusion
From the article you learned about what the subject of economic science is, we examined the history and functions of learning. But it is worth noting that the economy does not stand still and is constantly evolving, which can not be said about many other exact sciences.
For example, in mathematics all the laws were deduced a long time ago, and they work now the same way as they did thousands of years ago. In economic science, on the contrary, there is no single right decision. With each century, scientists revise and refute certain theories put forward by their predecessors. Perhaps this is what attracts more and more generations to engage in economics, because you can always make your discovery.
