Economics

Economics (from the Greek οίκος , 'house', and νομος , 'rule', hence "household management") is a social science that studies the production, distribution, trade and consumption of goods and services. Economics is said to be positive when it tries to objectively predict and explain consequences of choices, given a set of assumptions or a set of observations. The choice of which assumptions to make in building a model as well as which observations to highlight, however, is a normative choice. Economics is also said to be normative when it recommends one choice over another, or when a subjective value judgement is made.

Development of economic thought

Main article: History of economic thought.

~ ~ ~ ~ ~ ~ ~ ~ ~ ~

The term economics was coined around 1870 and popularized by influential "neoclassical" economists such as Alfred Marshall (Welfare definition), as a substitute for the earlier term political economy, which referred to "the economy of polities" – competing states. The term political economy was used through the 18th and 19th centuries, with Adam Smith, David Ricardo and Karl Marx as its main thinkers and which today is frequently referred to as the "classical" economic theory. Both "economy" and "economics" are derived from the Greek oikos- for "house" or "settlement", and nomos for "laws" or "norms".

Related Topics:
Economics - 1870 - Alfred Marshall - Welfare definition - Political economy - State - Adam Smith - David Ricardo - Karl Marx - Greek

~ ~ ~ ~ ~ ~ ~ ~ ~ ~

Economic thought may be roughly divided into three phases: Premodern (Greek, Roman, Arab), Early modern (mercantilist, physiocrats) and Modern (since Adam Smith in the late 18th century). Systematic economic theory has been developed mainly since the birth of the modern era.

Related Topics:
Greek - Roman - Arab - Mercantilist - Physiocrats - Adam Smith - 18th century - Modern era

~ ~ ~ ~ ~ ~ ~ ~ ~ ~