Economics: Difference between revisions
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'''Economics''', according to a classical definition, is the [[Wikipedia:Social sciences|social science]] that studies the [[ | '''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]] ''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 “[[Production|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 "Man, Economy and State"], 11. Types of Exchangeable Goods, p.162.</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> | ||
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.' | 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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==References== | ==References== | ||
Revision as of 09:10, 30 April 2009
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 Wikipedia:Ancient 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]
References
- ↑ Harper, Douglas. "Online Etymology Dictionary - Economy", referenced 2009-04-26.
- ↑ Murray N. Rothbard "Man, Economy and State", 11. Types of Exchangeable Goods, p.162.