Figuratively, the economy as a science is characterized by ancient Greek origin, since many disciplines arose precisely in 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 radically changed. Now much more is 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 activities of people, about the possibility of using limited resources to provide society with all the necessary needs. The relations that arise between participants in trading operations are also taken into account.
As for considering the economy as an economy, that is, the totality of the available means, products, objects and substances of the spiritual and material world, the system should be perceived as one of the ways of life support, maintenance and improvement of living conditions.
Separation 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, in foreign literature they try to separate this concept. For scientific discipline, the term "economics" is used. This separation contributes to a clearer understanding.
There are individual authors who consider the economy not only in terms 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 meaning of the term “science”. However, one cannot but take into account its connection with other social disciplines. It is closely intertwined with history, jurisprudence, political science, sociology and even psychology.
For example, the economy is not able to function normally without a specific legal basis. The established standards make it possible to regulate economic activity. At the same time, the need for legal aspects is generated by changes in the commercial environment.
Speaking about the relationship with other social disciplines, it must be said that the economy as a science is characterized by the greatest accuracy. It actively uses mathematics, and also often conducts quantitative methods of analysis.
Macroeconomic part
There is a section of the economy that studies economic activity in general. The phenomena occurring in it cannot be accurately predicted, but it is possible to make certain predictions through graphs, mathematical functions, diagrams, and tables. The parameters are taken over a certain period of time, but if necessary, with their help they determine the situation at a particular moment.
The general economy 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 provide a theoretical justification of how consumers reason when purchasing products, how enterprises plan the number of hired workers, and the like.
Microeconomics explores the following areas:
- general equilibrium of prices;
- public goods;
- tasks of consumers and enterprises;
- external effects;
- market structure;
- the appearance of asymmetric information.
What characterizes a market economy?
The most optimal is the system of economic relations, which ensures freedom of choice. With this option, the manufacturer can engage in various types of entrepreneurial activities. The consumer is given 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 businesses to achieve economic independence. Pricing is based on supply and demand, so self-regulation of production processes occurs. The final cost in the absence of monopolies is not determined by anyone. Everything is decided by the market.
In conclusion
In the framework of the article, it was possible to obtain information on what characterizes the economy as a science. The answer was quite extensive. However, in general, the economy can be represented as a discipline that studies the sphere of management and the relationships of people participating in activities to obtain and use possible means of subsistence.