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'''Economics''', according to a classical definition,  is the [[Wikipedia:Social sciences|social science]] that studies the [[Wikipedia:Production theory basics|production]], [[Wikipedia:Distribution (economics)|distribution]], and [[Wikipedia: Consumption (economics)|consumption]] of [[Wikipedia:Good (economics and accounting)|goods]] and [[Wikipedia:Service (economics)|services]]. The term ''economics'' comes from the [[Wikipedia:Ancient Greek]] ''oikonomia'' ("management of a household, administration") from ''oikos'' ("house") and ''nomos'' ("custom" or "law"), hence "rules of the house(hold)".<ref name="etymology">Harper, Douglas. [http://www.etymonline.com/index.php?term=economy "Online Etymology Dictionary - Economy"], referenced 2009-04-26.</ref>
'''Economics''', according to a classical definition,  is the [[Wikipedia:Social sciences|social science]] that studies the [[production]], [[Wikipedia:Distribution (economics)|distribution]], and [[Wikipedia: Consumption (economics)|consumption]] of [[good]]s and [[Wikipedia:Service (economics)|services]]. The term ''economics'' comes from the [[Wikipedia:Ancient Greek|Greek]] ''oikonomia'' ("management of a household, administration") from ''oikos'' ("house") and ''nomos'' ("custom" or "law"), hence "rules of the house(hold)".<ref name="etymology">Harper, Douglas. [http://www.etymonline.com/index.php?term=economy "Online Etymology Dictionary - Economy"], referenced 2009-04-26.</ref>


For the [[Austrian Economics|Austrian school]], Economics deals in general with the action of men to satisfy their desires, and, specifically, with the process of exchange of [[good]]s as a means for each indi­vidual to “produce” satisfactions for his desires. These goods may be tangible commodities or they may be intangible personal services. The principles of [[supply]] and [[demand]], of [[price]] determi­nation, are exactly the same for any good, whether it is in one category or the other.<ref name="Rothbard_economics">Murray N. Rothbard [http://mises.org/rothbard/mes/chap2d.asp "11. Types of Exchangeable Goods"], ''[[Man, Economy and State]]'', online edition, referenced 2009-04-26.</ref>
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For the [[Austrian Economics|Austrian school]], this definition is not as much incorrect as it is too constricting. Economical principles apply to more than one specific kind of human action. [[Ludwig von Mises|Mises]] popularized the term for a new science, [[praxeology]]: ''"The economic or catallactic problems are embedded in a more general science, and can no longer be severed from this connection. No treatment of economic problems proper can avoid starting from acts of choice; economics becomes a part, although the hitherto best elaborated part, of a more universal science, praxeology."''<ref name="Mises">Ludwig von Mises. [http://mises.org/humanaction/introsec1.asp "1. Economics and Praxeology"], ''[[Wikipedia:Human Action|Human Action]]'', referenced 2009-04-26.</ref>
For the [[Austrian Economics|Austrian school]], this definition is not as much incorrect as it is too constricting. Economical principles apply to more than one specific kind of human action. [[Ludwig von Mises|Mises]] popularized the term for a new science, [[praxeology]]: ''"The economic or catallactic problems are embedded in a more general science, and can no longer be severed from this connection. No treatment of economic problems proper can avoid starting from acts of choice; economics becomes a part, although the hitherto best elaborated part, of a more universal science, praxeology."''<ref name="Mises">Ludwig von Mises. [http://mises.org/humanaction/introsec1.asp "1. Economics and Praxeology"], ''[[Wikipedia:Human Action|Human Action]]'', referenced 2009-04-26.</ref>


<references />
According to Rothbard: 'the entire Austrian economic theory is the working out of the logical implications of the fact that humans engage in purposeful action.'
 
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==Economics and ethics==
Economics is a value-free, theoretical science and as such avoids any judgment of value. It is not its task to tell people what ends they should aim at. It is a science of the means to be applied for the attainment of ends chosen, not a science of the choosing of ends. Ultimate decisions, the valuations and the choosing of ends, are beyond the scope of any science. Science never tells a man how he should act; it merely shows how a man must act if he wants to attain definite ends.<ref name="Mises">Ludwig von Mises. [http://mises.org/humanaction/introsec3.asp "3. Economic Theory and the Practice of Human Action"], ''[[Wikipedia:Human Action|Human Action]]'' online edition, referenced 2009-04-26.</ref>
 
 
==References==
{{Reflist}}
 
==Links==
* [[Wikipedia:Economics|Economics]] on Wikipedia
* [http://mises.org/daily/4252 Why Economics Is Crucial for Ethics] by Art Carden, April 2010
* [http://www.marketwatch.com/story/10-things-economists-wont-tell-you-2013-06-08?pagenumber=1 10 things economists won’t tell you], ''MarketWatch'', June 2013


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[[Category:Economic concepts|*]]

Latest revision as of 05:38, 13 June 2013

Economics, according to a classical definition, is the social science that studies the production, distribution, and consumption of goods and services. The term economics comes from the Greek oikonomia ("management of a household, administration") from oikos ("house") and nomos ("custom" or "law"), hence "rules of the house(hold)".[1]

For the Austrian school, Economics deals in general with the action of men to satisfy their desires, and, specifically, with the process of exchange of goods as a means for each indi­vidual to “produce” satisfactions for his desires. These goods may be tangible commodities or they may be intangible personal services. The principles of supply and demand, of price determi­nation, are exactly the same for any good, whether it is in one category or the other.[2]

Economics and ethics

Economics is a value-free, theoretical science and as such avoids any judgment of value. It is not its task to tell people what ends they should aim at. It is a science of the means to be applied for the attainment of ends chosen, not a science of the choosing of ends. Ultimate decisions, the valuations and the choosing of ends, are beyond the scope of any science. Science never tells a man how he should act; it merely shows how a man must act if he wants to attain definite ends.[3]


References

  1. Harper, Douglas. "Online Etymology Dictionary - Economy", referenced 2009-04-26.
  2. Murray N. Rothbard "11. Types of Exchangeable Goods", Man, Economy and State, online edition, referenced 2009-04-26.
  3. Ludwig von Mises. "3. Economic Theory and the Practice of Human Action", Human Action online edition, referenced 2009-04-26.

Links