Difference between revisions of "Economics"

Revision as of 01:38, June 28, 2007

Face-to-face trading on the New York Stock Exchange's trading floor.

Economics is a social science concerned with how society produces, allocates, and consumes goods and services.

Issues in economics

Economics deals with a large number of issues:

Theory of value: What are things worth? Why are they worth what they're worth?
Economic justice: What is a "fair" distribution of resources in a society?
Economic prosperity: What policies encourage economic growth and development?
Economic prediction: What can the economic realities today tell us about the economic realities of tomorrow?

Theory of value

There are a number of different "theories of value," each of which seek to explain what things are worth.

Labor theory of value: Goods and services are worth the total labor necessary to acquire them;
Randian theory of value: Value derives from the objective realities of an individual's situation, and reasonable goals on the part of the individual;
Subjective theories of value: value is created and determined by subjective demand and scarcity

Economic justice

There are a number of different views on which economic outcomes are "just;"

Laissez-faire capitalism: The idea that economic outcomes are just when individuals are free to make economic decisions without interference from government, or violation of property rights;
Egalitarianism: The idea that economic outcomes are just when all individuals do similar amounts of work, and receive similar pay;
Marxism: The idea that economic outcomes are just when individuals produce according to their abilities and consume according to their needs;

Disciplines within economics

Economics is a very broad discipline, and involves the following other disciplines as well:

Moral philosophy: How ought a society produce and distribute goods and services?
Psychology: What principles underlie human economic decision-making?
Mathematics: What mathematical models can predict economic outcomes?
Ecology: What economic policies and practices are ecologically sustainable?

Branches of economics

Microeconomics: the study of economic decisions in individual people, businesses, and markets;
Macroeconomics: the study of economic dynamics and policies in an entire economy

History of economics

Main article: History of economics

It is generally accepted that the formal study of economics began with the Scotsman Adam Smith, in his book An Inquiry into the Nature and Causes of the Wealth of Nations. The origins of the field however, lie in the banking industry, which has developed over thousands of years.^{[Citation Needed]}

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 [[Image:NYSE-floor.jpg|right|thumb|Face-to-face trading on the [[New York Stock Exchange]]'s trading floor.]]
-'''Economics''' is a social [[science]] concerned with how society allocates its limited resources. Economists normally take a [[utilitarian]] view of the world, being more concerned with the most efficient systems than with social equity, or societal values.
+'''Economics''' is a social [[science]] concerned with how society produces, allocates, and consumes goods and services.
-It is generally accepted that the formal study of economics began with the Scotsman [[Adam Smith]], in his book [[An Inquiry into the Nature and Causes of the Wealth of Nations]]. The origins of the field however, lie in the [[banking]] industry, which has developed over thousands of years.{{fact}}
+== Issues in economics ==
+Economics deals with a large number of issues:
+* [[Theory of value]]: What are things worth?  Why are they worth what they're worth?
+* [[Economic justice]]: What is a "fair" distribution of resources in a society?
+* [[Economic prosperity]]: What policies encourage economic growth and development?
+* [[Economic prediction]]: What can the economic realities today tell us about the economic realities of tomorrow?
-Economics generally divides into two broad areas of study [[Macroeconomics]], which is concerned with the study of a given economy as a whole, and [[Microeconomics]], which is concerned with a particular market, or firm within that economy.
+=== Theory of value ===
+There are a number of different "theories of value," each of which seek to explain what things are worth.
+* [[Labor theory of value]]: Goods and services are worth the total labor necessary to acquire them;
+* [[Randian theory of value]]: Value derives from the objective realities of an individual's situation, and reasonable goals on the part of the individual;
+* [[Subjective theories of value]]: value is created and determined by subjective demand and scarcity
-Examples of systems in [[macroeconomics]] are [[capitalism]], [[socialism]], and [[communism]].
+=== Economic justice ===
+There are a number of different views on which economic outcomes are "just;"
+* [[Laissez-faire capitalism]]: The idea that economic outcomes are just when individuals are free to make economic decisions without interference from government, or violation of [[property rights]];
+* [[Egalitarianism]]: The idea that economic outcomes are just when all individuals do similar amounts of work, and receive similar pay;
+* [[Marxism]]: The idea that economic outcomes are just when individuals produce according to their abilities and consume according to their needs;
-In [[economics]], a bull market refers to a situation in which stock values are expected to rise.
+== Disciplines within economics ==
+Economics is a very broad discipline, and involves the following other disciplines as well:
+* [[Moral philosophy]]: How ''ought'' a society produce and distribute goods and services?
+* [[Psychology]]: What principles underlie human economic decision-making?
+* [[Mathematics]]: What mathematical models can predict economic outcomes?
+* [[Ecology]]: What economic policies and practices are ecologically sustainable?
+==Branches of economics==
+* [[Microeconomics]]: the study of economic decisions in individual people, businesses, and markets;
+* [[Macroeconomics]]: the study of economic dynamics and policies in an entire economy
+== History of economics==
+''Main article: [[History of economics]]''
+It is generally accepted that the formal study of economics began with the Scotsman [[Adam Smith]], in his book [[An Inquiry into the Nature and Causes of the Wealth of Nations]]. The origins of the field however, lie in the [[banking]] industry, which has developed over thousands of years.{{fact}}
-[[Category:Economics| ]]
+[[Category:Economics]]