The economics is a science that studies ways to generate, distribute and create wealth. The concept of economics can be very broad and encompass various elements such as trade and markets. It is a social science, through which humans have sought to distribute limited resources in a way that allows development.

Much debate is created around the economy, from the search to satisfy human needs, since it is difficult to agree on what are the basic needs of a society, seen from the perspectives of power.

Generate wealth or create poverty? The economy is the problem and the solution to many problems related to inequality , and to understand a little better these concepts, we present everything you need to know about this science.

What is the economy for?

What is the value of a given object? How to put a price on work? These are questions that are increasingly difficult to answer, for this reason the economy is looking for ways to answer this and many other similar questions, in a way that everyone is satisfied.

The economy makes the world go round and brings progress to society when economic policies are put in favor and at the service of the community to find ways to distribute resources, satisfy needs and produce wealth.

However, in many cases the economy can be put at the service of some, putting the particular needs of small groups above the social welfare of the majority, bringing serious consequences, poverty and misery.

What is the economy?

As with many complex concepts, economics can have different definitions according to different authors, as is the case of Lionel Robbins, who has defined it as a branch that analyzes how human beings seek to satisfy infinite needs with limited resources.

There are many currents of thought regarding the concepts of economics such as Marx, the mercantilist current, monetarism and Keynesianism are also known.

Political economy

We could say that political economy writes the rules of the game, studies economic laws in order to find a way to ensure that it benefits society, that is, its ultimate goal is the common good. Political economy is divided into several types which are:

Pure political economy

It studies the way in which humans make economic transactions spontaneously and is based on theoretical foundations.

Applied political economy

Applied political economy looks for a way to apply theoretical principles in order to create the most adequate means to achieve well-being for the entire society.

Studying these concepts alone can be difficult without putting into context the ways in which society has come together to create a better way of life for all, working the land, raising livestock, exploiting natural resources, these are all economic activities, exchanging goods and services, the creation of money, all this is economics.

Areas of the economy

The enemy of the economy is scarcity, since as we mentioned before, human needs, unlike resources that are limited, these are unlimited. In the economy there are two types that vary according to the approach they have to the problem of resources

Macroeconomy

As the term indicates, it is basically about seeing the complete economic picture, how large-scale phenomena affect consumption, bases its studies on analysis and statistics, measures the level of employment and income and can trace the success or failure of a certain economic model.

Microeconomics

In microeconomics, attention is not paid to large economic events, but to the movement in small people and in the home and how this affects the creation of wealth or the satisfaction of human needs. It is studied how certain measures such as a certain tax can affect the consumption of a certain product.

As you can see, the economy aiming to study man and how he struggles to solve economic problems has a scope of social action, which studies how different societies carry out actions to obtain resources or goods destined to improve their own situation and progress.

What is the importance of the economy?

Without economics and its studies on human needs and how they are related to the search for well-being, it would be impossible to determine the value of anything and in this way, progress could not have occurred that would lead us to industrialization and later to globalization.

Even in the most rudimentary and ancient commercial exchanges such as barter it was necessary to fix the value of each thing, a hen could not be exchanged for a cow but perhaps 10 hens for a cow and from this important need to establish the fair value of each thing was born the economy.

Economy progress and technology

As we mentioned without economy, it would be impossible to have reached society as we know it in the 21st century. To get to produce the technology that makes life possible today, companies and industries needed ways to know how much the work, raw material and manufacturing process cost in terms of effort, time, energy expenditure or consumption of fossil fuels It is also in this way that oil became a fundamental part of the world economy.

The economy in the information age

Despite the fact that this science continues to study the same phenomena, new elements have come into play in less than a hundred years that have completely changed the way of looking at the economy. Such is the case with the creation and launch of cryptocurrencies to boost the economy of many countries, as it is difficult to price something that is not supported in the traditional way.

Long before cryptocurrencies, the internet first revolutionized the world economy, when the name of a certain web domain could be worth impressive sums of money, this occurred due to the phenomenon of supply and demand and is the same phenomenon that gives value to cryptocurrencies.

Although conservative economists may see these new proposals as not very durable in time, the truth is that they have changed the way people invest and save money, which will undoubtedly be a wide field of study for the economy in the years to come.

What are the main branches of the economy?

The economy has several branches within which the following stand out:

International economy

  • This branch studies all types of commercial exchanges not necessarily governmental, transactions in international markets, questions regarding investments at an international level.

Here enter aspects such as the value of currencies internationally, exchange rates, as well as supply and demand between countries and all exchange of products, goods and services.

Financial economics

  • It is basically an economy of risk, it analyzes the risks and benefits of an uncertain investment, it looks for ways to generate the greatest amount of profit with a minimum risk for a certain product or service.

Health economics

  • The study of health from the point of view of the economy is vital for human life, here the price of insurance policies comes into play, how much it costs to access a certain treatment, how the consumption of a certain harmful product such as cigarettes affects health systems.

Economics of education

  • The economics of education is based on human capital. It focuses on the study and implementation of programs that seek to make education accessible to all, considering it as an investment and increase in productivity.

This branch of the economy seeks to fulfill the final objective, which is the well-being and satisfaction of human needs. Among the central topics of study are financing and equity, educational efficiency and production, management and planning, training and the labor market, and the evaluation of educational systems employed.

The labor economy

  • Very necessary to determine the value of work and it has been vital for the development of terms used all the time now as “human capital” goes hand in hand with business economics that at the same time studies how to know how much a company can earn for the creation of a certain product with respect to the cost of producing it.

Environmental economics

  • Studies the consequences of actions on the environment and how they impact finances, it could be derived from the ecological economy that studies the impact of the exploitation of resources such as oil, gold, iron and other minerals.

Conclusion

To get to know the economy in depth, it is necessary to know the history of man, since the economy is part of society and exists as part of it from the beginning. When we began to change to sow and cultivate the land and eat little by little while societies began to connect across the sea, agreements had to be created for the effective and fair exchange of products.

Samantha Robson
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Dr. Samantha Robson ( CRN: 0510146-5) is a nutritionist and website content reviewer related to her area of ​​expertise. With a postgraduate degree in Nutrition from The University of Arizona, she is a specialist in Sports Nutrition from Oxford University and is also a member of the International Society of Sports Nutrition.

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