Figuratively, economics as a science is characterized by ancient Greek origin, since many disciplines originated during this period. The term itself is obtained by combining two words. Translated into Russian, the first of them means "economy", and the second - "law". Thus, this concept implies the art of housekeeping. However, over hundreds of years, the meaning of this term has changed radically. Much more is now being invested in it than in ancient Greek times.
Wider interpretation
The modern economy as a science is characterized by the totality of existing knowledge about the economic activity of people, about the possibility of using limited resources to provide society with all the necessary needs. Relations that arise between participants in trading operations are also taken into account.
As for the consideration of the economy as an economy, that is, the totality of available funds, products, objects and substances of the spiritual and material world, the systemshould be perceived as one of the ways of life support, maintenance and improvement of living conditions.
Division in foreign literature
It became clear that the economy as a science is characterized by a set of certain knowledge about economic activity. In this regard, foreign literature tries to separate this concept. For a scientific discipline, the term "economics" is used. Such a division contributes to a clearer understanding.
There are some authors who consider the economy not only from the point of view of scientific discipline and economic activity, but also as a relationship between people. They inevitably arise in the process of production, consumption, distribution and exchange of products.
Relationship with other disciplines
It is not so difficult to understand what characterizes the economy in the sense of the term "science". However, one cannot ignore its connection with other social disciplines. It is closely intertwined with history, law, political science, sociology and even psychology.
For example, the economy is not able to function normally without a certain legal framework. Established norms allow to regulate economic activity. At the same time, the need for legal aspects is generated by changes in the commercial environment.
Regarding the relationship with other social disciplines, it must be said that economics as a science is characterized by the greatest accuracy. It makes extensive use of mathematics, and often uses quantitative methods of analysis.
Macroeconomic part
There is a branch of economics that studies economic activity in general. The phenomena occurring in it cannot be predicted with absolute accuracy, but certain predictions can be made through graphs, mathematical functions, charts and tables. The parameters are taken for a certain period of time, but if necessary, they help determine the situation at a particular moment.
General economics as a science is characterized by a deeper study:
- state budget;
- unemployment rate;
- money circulation processes;
- trade balance;
- general price regime.
Microeconomic part
There is also a section that deals with the study of issues related to activities in the production, consumer and distribution sectors. At this level, it becomes possible to give a theoretical justification for how consumers reason when purchasing products, how enterprises plan the number of hired workers, and the like.
Microeconomics explores the following areas:
- general price equilibrium;
- public goods;
- tasks for consumers and businesses;
- external effects;
- market structure;
- appearance of asymmetric information.
What characterizes a market economy?
MostThe system of economic relations is considered to be optimal, in which freedom of choice is ensured. With this option, the manufacturer can engage in various types of business activities. The consumer, on the other hand, gets the opportunity to choose a product from a wider range, since the level of competition in this case is very high.
The variety of types of private property enables economic entities to achieve economic independence. Pricing is based on supply and demand, so there is a self-regulation of production processes. The final cost in the absence of monopolies is not determined by anyone. The market decides everything.
As a conclusion
As part of the article, it was possible to obtain information about what characterizes economics as a science. The answer is quite broad. However, in general, economics can be presented as a discipline that studies the sphere of management and the relationship of people participating in activities to obtain and use possible means of subsistence.
