Skip to content
Key Concepts Of Economic Sciences And Their Frontiers

Key Concepts Of Economic Sciences And Their Frontiers

However, all this changed due to agriculture, once humanity was able to discover how to produce its own food, the human being went from being a nomad to being sedentary, this change in the habits of the human being made it possible to be established in a single place and in doing so was able to form what we now know as societies.

Once the first societies were formed, the human population increased, which led to a search for ways to satisfy the basic needs of each of these individuals, but as the increase was greater, the inhabitants began to have a shortage of these needs since there was no way to satisfy everyone, as well as new needs, began to arise.

Humanity is growing more and more and is acquiring more and more needs and the resources to satisfy them are limited, although they are produced in large quantities, it is not enough to be able to satisfy everyone in general.

In this article we will study what economic science implies and all its minor aspects, we will talk about its definition, its origin, as well as the important points it covers, and what its borders are.

Definition

According to (wikipedia.org, 2018) economic science is the social science that studies:

  • The extraction, production, exchange, distribution, and consumption of goods and services.
  • The way or means of satisfying human needs through limited resources.
  • How people and societies survive, prosper, and function.

Consequently, economics can be defined as the science that studies “how a society is organized to produce its means of existence which, distributed among its members and consumed by them, allow society to produce them again and so on, thereby providing, in a constantly renewed form, the material basis for the whole reproduction of society in time.

Beyond the focus on economic processes (extraction, transformation, production, distribution, and consumption), economic analysis has been applied to business, finance, health care, and government. They can also be applied to disciplines as diverse as crime, education, family, law, public choice, religion, institutions, war, science, and the environment. At the turn of the 21st century, the expanding dominance of economics in the social sciences has been described as the imperialism of economics.

The ultimate goal of the economy is to improve the living conditions of people in their daily lives.

Similarly (González) tells us that economic science is the following.

The first definition is that of Lord Robbins: the economic science

The second definition is presented by Alfred Marshal:

“Economic science examines that part of social and individual action which is most closely tied to the achievement and employment of the material requirements of  well-being.”

Types of economy

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 is about changing the production process based on an economy based on caring for the environment and improving the quality of life of a society. It seeks to satisfy the needs of the generations that are living in a certain temporary space without putting at risk the subsistence or the economic possibilities of future generations.

Business economics is how an organization can manage its resources and services, offering a competitive vision against the market. It uses several scientific disciplines that allow it to carry out this work. It is a way of applying economics in the field 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.

The natural economy as defined by the biologist MT Ghiselin is the study of the consequences that scarcity causes in living beings. Proposing a deep analysis of human actions and their secondary effects on the environment.

Political economy is the study of human behavior, examined within a characteristic legal context. The political economy is related to the natural economy in that human actions, its political economy can affect the natural environment, positively or negatively, the interaction of living beings with the environment always modifies it.

A mixed economy is a commercial exchange system that is not free, where the state is in charge of establishing certain norms that allow a balanced distribution of profits among the different merchants of that economic system.

The market economy is a social system where the influencing factors are the division of employment, goods, and services and the interaction between the entities that make up a society. It is a free system of prices set by demand and supply. It is a free economic system, where those who intervene in the exercise of buying and selling set the conditions. There is no country today where commercial freedom is absolute. (Gutierrez, 2016)

Business cycles

They are one of the most interesting topics in the study of economics and, particularly, macroeconomics. This branch of economics is concerned with studying the causes of economic cycles, their behavior, intensity, etc.

Business cycles are the recurrent increases and decreases (fluctuations) of global economic activity (in most economic sectors) in a given period. These do not appear in the same way in different periods, since their intensity, duration or behavior may vary, although all are characterized by ascending and descending phases. (Altamira, 2017)

There are four common phases in business cycles:

Theory of the economy.

There are two fields of study within economics:

The positive economy.

Seeks to make a description of economic phenomena. It studies the forces that affect the economy and seeks to predict the consequences of their activity.

Some examples of questions that I would try to answer could be: how does an increase in the price of a newspaper affect the amount of it that is bought? How does the rise in wages affect the demand for menus in restaurants in an area? How does a drop in interest rates affect the investments made by companies?

Normative economics.

It seeks to define criteria that guide economic decisions. It answers the question “what should be”, and “what should be done”. For example: Should a government lower taxes? Should pollution be taxed? Should pensions be increased? Economic policy decisions constitute the government’s response to these questions. In this approach, therefore, a subjective component is revealed, the issue of value judgments. (Gutierrez, 2016)

What are economic sciences for?

The economic sciences are designed to be at the service of people, groups, businesses, and societies, through the study of the relationships that are generated between the social and the monetary, the needs and their satisfaction, well-being, and capital. as a resource capable of providing tools to achieve growth. The sciences of economics quantify the development and availability of use of resources so that the knowledge obtained can be used to improve the distribution and generation of wealth and opportunities. For example, a person could use economics to find where it is best to save and invest money, a company would use economics to maximize profits and business benefits.

Who uses the sciences of economics?

The economic sciences are used by politicians as a tool to project and improve the growth of countries, to be able to overcome difficulties and negative indicators such as unemployment or recession in some sectors. Likewise, economic sciences are very useful for company managers who pursue their objectives to achieve the survival and prosperity of the businesses they lead.

What are the key concepts of economic sciences?

The key concepts of the sciences of economics are circumscribed in the analysis of production, consumption, the generation of wealth and its distribution, the attainment of resources and their efficient use, the evaluation of spending to pursue efficiency of it, the relationships between raw materials, processes and customers, within an interdependence that allows all those who participate to win and grow in well-being and prosperity.

Where is the great benefit of these sciences?

The great benefit of the economic sciences is focused on achieving the balance and growth of all the agents that intervene in the system, including the macroeconomic and microeconomic variables, and the integral benefits of the countries, companies, and people. The main benefit of speculative investments is to receive significant appreciation of assets, high financial returns, and growing profit margins in the purchase negotiation. (inversion-es.com, 2014).

Conditioning factors of economic science

Productive factors.

They are the goods or services that companies use in their production process.

These factors are generally classified into three groups:

  • The Earth (natural resource).
  • The Work (the human resource, or the time and intellectual capacity that people
  • engaged in productive activity).
  • Capital is made up of durable goods.

economic subjects.

domestic economies. In economic theory, the concept of the consumer is replaced by that of home economics. Within this economy, we assume:

  • That each domestic economy tries to maximize what is indistinctly called its satisfaction.
  • Domestic economies are the main owners of the means of production.

Companies. They are the unit that uses the factors of production to produce merchandise that they sell to other companies, to domestic economies, or the state. We assume here:

  • Decisions are made concerning a single objective: obtaining the greatest possible benefit.
  • Companies are the main users of services and factors of production.

State or authority.

It includes all public agencies, government bodies, or other organizations that belong to or owe their existence to central, regional, or local governments.

Frontier of possibilities or transformation curve.

Until now it has been shown that goods are scarce because there were not enough resources to produce all the goods that individuals want to consume. Given this, the economy must decide how to use them. You must choose between the different baskets of goods (the what). He must choose between the different production techniques (the how) and must ultimately decide who is to consume the goods (the for whom). This problem is usually expressed through the study of what is called the Production Possibilities Frontier. It shows the maximum quantities of production that an economy can obtain, given the technological knowledge and resources available, and given the quantities of other goods and services that it also produces.  (Gutierrez, 2016).

Conclusion

At present, the economy has unfortunately been elaborated in a system that is based above all on profit as the main or the main source of impetus towards economic progress.

Foreseeing the future, the World Union believes in the development of the economy as the main factor for the development of countries. Due to that, it will give a strict follow-up to the etymological content, that is; encourage equal distribution among all members of a society, of community wealth; Intervening, supporting, and reorienting among those who most need, the economic means that give them a better quality of life and that is always within their reach.

These phenomena are different from what humanity has known throughout its history, this allows us to think that the economic organization that is emerging from the World Union will be a completely different system from all the previous ones. It will be the means to achieve the full development of the people of the world.

Bibliography.

Altamira, MD (May 16, 2017). https://www.gestiopolis.com. Retrieved on May 10, 2018, from https://www.gestiopolis.com: https://www.gestiopolis.com/las-fronteras-la-ciencia-economica/

González, AM (sf). http://www.eumed.net/libros-

free/2009a/505/Science%20Economics.htm. Retrieved on May 10, 2018, from http://www.eumed.net/libros-gratis/2009a/505/Ciencia%20Economica.htm: http://www.eumed.net/libros-gratis/2009a/505 /Science%20Economics.htm

Gutierrez, KY (May 10, 2016). https://www.gestiopolis.com. Retrieved on May 10, 2018, from https://www.gestiopolis.com: https://www.gestiopolis.com/teoria-fronteras-la-ciencia-economica/

investment-es.com. (November 8, 2014). http://www.inversion-es.com.

Retrieved on May 10, 2018, from http://www.inversion-es.com: http://www.inversion-es.com/economia/ciencias-economicas.html

wikipedia.org. (May 7, 2018). https://en.wikipedia.org. Retrieved on May 10, 2018, from https://es.wikipedia.org:

https://es.wikipedia.org/wiki/

Author

  • Key Concepts Of Economic Sciences And Their Frontiers

    BUZZBONGO  is a website founded in 2018 by a group of professionals with extensive experience in creating content on the Internet. The information you will find is prepared by experts in each of the topics covered on the web. The main objective of the project is to give our users a professional, verified, and up-to-date response to solve the doubts and problems they may have in their day-to-day life... About Writing Team visit (https://www.buzzbongo.com/about-us)

Leave a Reply