This science began to be constituted as a specific discipline that was studied as an organized society to produce and distribute the fruits of production and consume them. This discipline was political economy, a science that deals with the development of social relations of production, studies the economics tuition laws that govern the production and distribution, exchange, and consumption of material goods in human society in the various studies of its development.
Principles of Economics
Within these principles, there is the objective, which is based on improving living conditions and the economic support that people and societies have. It is important to note that available resources are limited (scarcity), but human needs are limitless. When a person decides to assign a resource to a specific use, he is discarding its use for another purpose. This is known as the opportunity cost.
It is also responsible for the study of all phases related to the production process of goods and services, from the extraction of raw materials to their use by the final consumer, which determines the way in which limited resources are allocated, this could be called circular economy.
The Main Objects Of Study Of The Economy Over Time Have Been:
• Setting prices of goods and productive factors (land, production, capital and technology).
• Behavior of financial markets.
• The law of supply and demand.
• The consequences of state intervention in society.
But In Addition To This
Various approaches to the study of economics have been developed. Initially as part of the study of political and social history, only its economic aspects were considered. Over time, economic history was acquiring its own place, in which institutions such as the constitution of a country, the history of certain taxes or of a particular sector, which in general are part of the economic development of a nation, were studied.
The use of figures and explanations of the development of countries soon became an irreplaceable ingredient for writing economic history. Therefore, the work of creating national accounts since the beginning of the 20th century in some countries was an essential factor for the discipline.
Sometime later, various theories about economic development were promoted, driven by understanding the various changes, stages, or predictable and identifiable periods. The most important currents that have existed on the world economy are: Besteconstuition, mercantilism, physio racy, classical school, Marxist school, Austrian school, neoclassical school, Keynesian school, monetarist school.
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