Economics is the social science that analyzes the production, distribution, and consumption of goods and services. The term economics comes from the Ancient Greek οἰκονομία (oikonomia, "management of a household, administration") from οἶκος (oikos, "house") + νόμος (nomos, "custom" or "law"), hence "rules of the house(hold)". Political economy was the earlier name for the subject, but economists in the late 19th century suggested 'economics' as a shorter term for 'economic science' that also avoided a narrow political-interest connotation and as similar in form to 'mathematics', 'ethics', and so forth.
A focus of the subject is how economic agents behave or interact and how economies work. Consistent with this, a primary textbook distinction is between microeconomics and macroeconomics. Microeconomics examines the behavior of basic elements in the economy, including individual agents (such as households and firms or as buyers and sellers) and markets, and their interactions. Macroeconomics analyzes the entire economy and issues affecting it, including unemployment, inflation, economic growth, and monetary and fiscal policy.
Other broad distinctions include those between positive economics (describing "what is") and normative economics (advocating "what ought to be"); between economic theory and applied economics; between rational and behavioral economics; and between mainstream economics (more "orthodox" and dealing with the "rationality-individualism-equilibrium nexus") and heterodox economics (more "radical" and dealing with the "institutions-history-social structure nexus").
Economic analysis may be applied throughout society, as in business, finance, health care, and government, but also to such diverse subjects as crime, education, the family, law, politics, religion, social institutions, war, and science. At the turn of the 21st century, the expanding domain of economics in the social sciences has been described as economic imperialism. An increasing number of economists have called for increased emphasis on environmental sustainability; this area of research is known as Ecological economics.
Other articles related to "modern, economics, economic, modern economics":
... He is considered by many to be the father of modern neuroscience ... and public intellectual, winner of Nobel Prize in Economics ... Gunnar Myrdal, Hayek shared the Nobel Memorial Prize in Economic Sciences in 1974." J ...
... In modern economics, however, the whole problem of the surplus product does not exist, or is not theorized in the same way ... The main reason is that in modern economics, based on double-entry bookkeeping, the value of inputs is always exactly equal to the value of outputs ... This mathematical or accounting identity holds true by definition, because in economic theory the operating surplus (or gross profit) is treated as the "cost of ...
... Economics has been subject to criticism that it relies on unrealistic, unverifiable, or highly simplified assumptions, in some cases because these assumptions ... The field of information economics includes both mathematical-economical research and also behavioral economics, akin to studies in behavioral psychology ... economists such as Keynes and Joskow have observed that much of economics is conceptual rather than quantitative, and difficult to model and formalize quantitatively ...
Famous quotes containing the words economics and/or modern:
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“How little do the most wonderful inventions of modern times detain us. They insult nature. Every machine, or particular application, seems a slight outrage against universal laws.”
—Henry David Thoreau (18171862)