Such a concept appeared back in the days of Aristotle, who was a Greek philosopher. While studying the satisfaction of human needs, he used the word "economy". This concept at that time meant the principles or laws of housekeeping, which is still relevant today. But still, a lot of time has already passed from that moment, and now science with this name covers almost all areas of human life.
Many scientists have devoted their entire lives to the study of a science such as economics. Basically, striking achievements in this science were achieved by people with outstanding abilities in mathematics and the exact sciences. It is so multifaceted that it has many subsections, which today have formed as separate types of sciences.
There is no single correct definition
There are a lot of approaches to what this concept means, and we can say that they are all partially correct. Most scientific manuals say that economics is a science that studies the needs of people for additional benefits, the processes of their creation and increase.
But this definition is not entirely true, since it does not cover all the facets of this science. If you examine the concept more objectively, we can conclude that the economy is a science that studies the relationships between manufacturers, suppliers, customers, as well as market relations, resource efficiency and other areas that relate to means of production and economic activity.
This is a communications system.
This definition is quite complicated for a simple layman. The simplified version reads as follows: “The economy is a system of ties at all levels of society, through the study of which it is possible to increase the efficiency of activities and satisfy the needs of all subjects of economic relations.
We can say that the economy studies the relationship of people in the process of production, spending, use, redistribution of any resources or means.
In principle, every modern person will be able to continue the phrase “Economics is ...”, since everyone meets with its manifestations regularly. How to spend resources, where to buy raw materials, whom to sell? There are many more such questions, and they have to be answered daily.
State and international level
Economics is studied both at the international level and at the state level. In the field of international economy, economists are studying the interaction of different countries, unions, associations with each other, who are looking for ways to rationally spend resources to meet their needs.
If we consider the state level, then we can say that the country's economy is a set of relationships between subjects of economic relations with each other, the use of resources and means of production at the level of one individual country. With an approach on such a scale, science comes down to studying the intra-market indicators of a particular country. It must be taken into account that the state economy is not just a science. There is such an indicator that is used in determining the level of development of the country, assessing the quality of life of the population, as well as in various economic studies.
We can also say that the country's economy is a complex system that consists of several areas: social, economic, organizational and other relationships formed at the state level.
Government is responsible
The government of a country is responsible for the level of economic development. On this side, it can be said that the state in the economy is a management body that stimulates development or inhibits growth, which directly affects the economy by adopting legislative reforms that regulate both domestic and foreign markets.
Each country has its own scientists who study the state economy. Thus, analyzing current indicators, domestic experts agree that the Russian economy is one of the most competitive economies in the world. According to various sources, her place in the world is at 6–8 positions. The last two years for the Russian Federation in the field of economic development have not been the best.
Not only are we rich in oil
For some reason, in the US and Europe, most politicians believe that the Russian economy is just oil. This type of raw material, of course, is a large part of all the revenues of the Russian Federation, but there are also a host of other resources, as well as goods that the country successfully sells in large volumes on foreign markets. For example, gas, weapons, agricultural products are always in demand abroad and also make up a considerable share in the country's total income.
The very development of the country's economy is an object of study for many experts in the economic sphere. All well-known economists claim that development is far from straightforward, and it is cyclical in nature, that is, over time, peak levels of development will be observed on an ongoing basis, but after them there will always be recessions.
What scale?
In research, one must also remember what the levels of the economy are. In simple words, this is the scale of those processes that are being analyzed. Depending on the scale, macro- and microeconomics can be distinguished.
According to the level of development of the country, they are divided into the following groups:
- developed (USA, Japan, France and other states with developed relationships at all levels of economic processes);
- developing (India, Brazil, etc.);
- least developed ( African countries and others that are only at the stage of creating developed economic ties).
Although all these groups are not axioms. When assessing the level of development for various indicators, the rating of countries will change. For example, Russia cannot definitely be attributed to developed or developing countries. With different approaches in the analysis, her rating will fluctuate, but only within the two groups.
Science has different areas of study.
It is necessary to pay attention to such a direction as the social economy. This is a type of economy aimed at studying the relationships of the population, protecting the rights of those sections of the population that are limited and low-income.
In this area, people's satisfaction with the country's economic development and the level of their well-being is becoming a very important indicator. When studying the economy from this perspective, it becomes clear the importance of the correct distribution of not only the results of labor, but also material resources and other factors of production.
You need to understand that in any case, when forming people's own incomes, a class division will arise: the rich, the middle-income or the low-income. In order to bridge the gap, state intervention in economic processes is mandatory. By adopting appropriate laws and regulations (taxes, subsidies, subsidies), such resources should be redistributed.
A few words in the end
Economics as a science is quite subjective, it does not have absolutely correct theories, laws and principles. All observations must be proved. From generation to generation, all theories of the correct economic development have been disputed by new scientists who came to science. Those principles, which were once proved by well-known experts, are no longer considered relevant today.
The world is constantly changing, and with it the human mind. If earlier it was possible to say with confidence that demand creates supply, then today the statement will already be wrong. Also past ideas about the price of products and services are already incorrect: the price does not always consist of production costs + expected profits.
The modern economy is approaching globalization and is taking on ever more complex forms. The modern understanding of the works of K. Marx is already completely different, and many of his statements have long been disputed.