Economy: definition and object of study

term "economy" was introduced by Aristotle in the III century BC, but the emergence of economics as a science occurred only in the XII-XIII centuries, along with the birth of capitalism.

Economy, the definition of which was given by many scientists in the end became one of the basic sciences.Since it faces virtually everyone because few who have never been in the shops and markets.So in the everyday world imperceptibly through this complex and multifaceted science - economics.

definition which is used in reference books most often is: the science of economic and industrial activities and the movement of its results between economic agents.The sphere of interests of the economy is high: the trend in prices, labor market, government regulation, cash-utility goods and services, competition and competitiveness, commodity-money relations, needs and so on.. In addition, one of the important parts of the study of economictheory is the global economy.

Determination of the global economy is as follows: the totality of the national economies of the world and relations between them.Thus, the global economy enters another and international trade, and the exchange of resources, and other economic relations arising between the two countries: economic and customs unions, international labor migration, and so on. N.

Economy, the definition given above, the majority of economistsIt is divided into two large components: micro and macroeconomics.As you can guess, Microeconomics examines the economic processes to the scale of cross-sectoral level and macroeconomics - at the country level.

main task of economics is to determine how best to meet unlimited needs with limited resources.History knows many techniques offered by eminent scientists to address this problem.

often distinguish 3 ways of farming at the country level: the command-administrative, mixed, and finally, market economy.Determining which method is used in this or that country is not so difficult.Command economy often used in totalitarian states, where the government clearly defines and controls the allocation of resources: goods, services, labor, and sets strict price.Most often, this method is ineffective.The market economy, by contrast, operates completely freely, the state only monitors and controls the bit resulting distortions.With varying degrees of effectiveness of the method combines the two previous mixed economy.

Determination of the equilibrium price in a market economy takes place automatically on the basis of supply and demand, prices also affect competition.Since consumers are driven to buy quality goods at the lowest possible price, and sellers want to sell goods at the highest price, in the end, the price is set at an average level that satisfies both sellers and buyers.The market economy is self-regulating, so it is considered the most effective way of farming and is most popular in the world.