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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]] ''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.'


Austrian School economists advocate strict adherence to [[Wikipedia:Methodological individualism|methodological individualism]] – analyzing human action from the perspective of individual agents.<ref name="Mises">Ludwig von Mises [http://mises.org/humanaction/chap2sec4.asp "The Principle of Methodological Individualism"], ''[[Human Action]]'', [[Mises Institute]]. Referenced 2009-04-24}.</ref> Proponents of this method, [[praxeology]], argue that the only means of arriving at a valid economic theory is to derive it logically from basic principles of human action. Proponents of this method hold that it allows for the discovery of fundamental economic laws valid for all human action. Alongside praxeology, the school has traditionally advocated an interpretive approach to history to address specific historical events.
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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

  1. Harper, Douglas. "Online Etymology Dictionary - Economy", referenced 2009-04-26.
  2. Murray N. Rothbard "Man, Economy and State", 11. Types of Exchangeable Goods, p.162.