Economy - what is it? Development of the country's economy

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

There was such a concept back in the days of Aristotle, who was a Greek philosopher. Studying the satisfaction of human needs, he used the word "economy". This concept at that time meant the principles or laws of housekeeping, which is still relevant today. But still, a lot of time has already passed since that moment, and now science with this name covers almost all areas of human life.

Studying such a science as economics, many scientists have devoted their entire lives. Basically, bright achievements in this science were achieved by people with outstanding abilities in mathematics and the exact sciences. It is so multifaceted that it has many subsections, which today have formed as separate types of sciences.

No single correct definition

There are quite a few approaches to what this concept means, and we can say that they are all partially correct. Most scientific manuals say that economics is a science that studies people's needs for additional benefits, the processes of their creation and increase.

But this definition is not entirely correct, since it is notcovers all facets of this science. If we examine the concept more objectively, we can conclude that economics is a science that studies the relationship between producers, suppliers, buyers, as well as market relations, resource efficiency and other areas that relate to the means of production and economic activity.

This is a link system

This definition is quite complicated for a simple layman. The simplified version sounds like this: “The economy is a system of connections at all levels of the life of society, through the study of which it is possible to increase the efficiency of activity and satisfy the needs of all subjects of economic relations.”

We can say that the economy studies the relationship of people in the process of production, spending, use, redistribution of any resources or funds.

In principle, every modern person will be able to continue the phrase "Economy is …", since everyone meets with its manifestations on a regular basis. How to spend resources correctly, where to buy raw materials, to whom to sell? There are many more such questions, and they have to be answered daily.

National and international level

Economics is studied both at the international level and at the state level. In the field of international economy, economists study the interaction of different countries, unions, associations with each other, which are looking for ways to rationally spend resources to meet their needs.needs.

If we consider the state level, we can say that the country's economy is a set of relationships between subjects of economic relations with each other, the use of resources and means of production at the level of one individual country. When approached on this scale, science is reduced to the study of intramarket indicators of a particular country. It should also be taken into account that the state economy is not just a science. There is such an indicator that is used in determining the level of development of the country, assessing the quality of life of the population, as well as in various economic studies.

You can also say that the country's economy is a complex system that consists of several areas: social, economic, organizational and other relationships formed at the state level.

Government is responsible

The government of a country is responsible for the level of economic development. From this point of view, it can be said that the state in the economy is a governing body that stimulates development or inhibits growth, which directly affects the economy through the adoption of legislative reforms that regulate both domestic and foreign markets.

Each country has its own scientists who study the state economy. So, analyzing current indicators, domestic experts agree that the Russian economy is one of the mostcompetitive economies in the world. According to various sources, its place in the world is at 6-8 positions. The last two years have not been the best for the Russian Federation in terms of economic development.

We are rich not only in oil

For some reason, in the US and Europe, most politicians believe that the Russian economy is only oil. This type of raw material, of course, is a large part of all the income of the Russian Federation, but there are also a lot of other resources, as well as goods that the country successfully sells in large volumes on foreign markets. For example, gas, weapons, agricultural products are always in demand abroad and also make up a significant share of the country's total income.

The very development of the country's economy is the object of study by many experts in the economic field. All well-known economists argue that development is far from being straightforward, but it is cyclical, that is, over time, peak levels of development will be observed on an ongoing basis, but after them there will definitely be recessions.

What scale?

In research, you need to remember what the levels of the economy are. This, in simple terms, is the scale of the processes that are being analyzed. Depending on the scale, macro- and microeconomics can be distinguished.

According to the level of development, countries are divided into the following groups:

- developed (USA, Japan, France and other countries with developed relationships at all levels of economic processes);

-developing (India, Brazil, etc.);

- the least developed (countries in Africa and others that are only at the stage of creating developed economic ties).

Although all these groups are not axioms. When evaluating the level of development according to different indicators, the rating of countries will change. For example, Russia cannot be definitely attributed to developed or developing countries. With different approaches in the analysis, her rating will fluctuate, but only within these two groups.

Science has different fields of study

It is imperative to pay attention to such a direction as the social economy. This is a type of economy aimed at studying the relationships of the population, protecting the rights of those segments of the population that are limited and needy.

In this area, people's satisfaction with the economic development of the country and the level of their well-being is becoming a very important indicator. When studying the economy from this side, it becomes clear the importance of the correct distribution of not only the results of labor, but also material resources and other factors of production.

You need to understand that in any case, when people form their own incomes, a class division will arise: rich, with an average income, or low-income. In order to smooth the gap, government intervention in economic processes is mandatory. Through the adoption of appropriate laws and regulations (taxes, subsidies, subsidies), such resources should be redistributed.

A final word

Economics as a science is quitesubjective, it does not have absolutely correct theories, laws and principles. All observations must be proven. From generation to generation, all theories of correct economic development were challenged by new scientists who came into science. The principles that famous experts once proved are no longer considered relevant at the present time.

The world is constantly changing, and with it - and human thinking. If earlier it was possible to say with confidence that demand creates supply, then today the statement will no longer be correct. Also, past ideas about the price of products and services are already incorrect: the price does not always consist of production costs + expected profit.

Modern economy is approaching globalization, becoming more and more complex forms. The modern understanding of the works of Karl Marx is already completely different, and many of his statements have long been disputed.