There are many different definitions and
explanations of Economic; some of them reflect update views of the subject or
different views between economists. The economic thought deals with different
thinkers and theories in the subject that became political
economy and economics,
start from the ancient world
to the present day. We can analyze the nature of economic by many ways, such as
the famous economists’ thought and different kinds of economic systems.
(Wikipedia, 2018)Adam Smith (16 June 1723 NS
(5 June 1723 OS) – 17 July 1790) said “nature and cause of wealth of
nations” whereby it” proposes to enrich people and sovereign”.
Adam Smith is one of the biggest star among famous economists. He was famous
for author of his book “An Inquiry into the Nature and Causes of the
Wealth of Nations “. Free Market is one of the topic in his book
which . (Wikipedia,
Free Market means an idealized
system in which the
prices for goods and services are determined by the open market and consumers,
in which the laws and forces of supply
and demand are free from any intervention by a government,
price-setting monopoly, or other authority. And he said there is invisible hand
in that , that will fix every disorder in the market and no need to involve by
the government. That kind of economic system is really popular nowadays and
most of the countries using it . Its also known as LAISSEZ-FAIRE ( let do )
Economic system. Its mean can be trade or do business until if no men personals
or properties are effect. And that type
of Economic system is totally opposite with Plan economy or command economy
which is totally control by government.
(wikipedia, 2018)Marxian economics is the economic which
is using by Communist Countries and it refers to economic thought tracing its
foundations to the critique of classical political
economy first expounded upon by Karl
and Friedrich Engels.
Its clearly defined in “Capitalism” ( the book which is
written by Karl Marx ). That book point out cons of 19 century’s Capitalism. Problems
of Capitalism mentioned by Karl Marx are one group of people own the whole
production capital of the country and profit oriented disorganized productions.
Starting from that command economy occurred in future. In Marxian economics ,
there is no individual’s profit and freedom. Individual income is only
depending on the needs not on the performance. But nowadays, there are some
communist countries such as China , Cuba and North Korea but their economic
system is not really like the original one. Especially China , they are using
(investopedia, 2018) The American economy was called
by John Maynard Keynes by the British Economist in the 1930’s to attempt to
understand the importance of the great depression. Keynes promotes the use of huge
amounts and decrease taxes for the needs and to eliminate global economic
depression. Keynesian economics is an economic theory of total spending
in the economy and its effects on output and inflation. Later, the
Keynesian economy was used to specify the concept of achieving optimal economic
performance, avoiding economic turmoil by influencing aggregate demand through
activist stabilization and government economic intervention policies.. Keynesian economics is considered
a “demand-side” theory that focuses on changes in the economy over
the short run. That type of economic calls Mix Economic System.
(LIBRARY ECONOMICS, 2018)Alfred Marshall led a
neoclassical school that gave every economist an honorable position in the social
sciences. He focused the welfare of a man. And he defined that wealth as the
foundation of human welfare, but in a way to stop it. Marshall mentioned that, “Political economy or
economy is a study of humans in ordinary life studies that examine parts of
individuals and social affairs that are closely related to the realization and
use of material conditions of welfare. It is a study of wealth on the one hand, and a study of
people on the other. Contemporaries exclude the activities of socially
displeased and non-standard people such as thieves and misers ects , and
exclude non-economic activities and disguised activities from economic study.
(Wikipedia, 2018)According to Robbins, “Economics is a science that examines human
behavior as a relationship between goals and scarce resources with alternative
uses.” Sir Robbins revealed rational discrepancies and inadequacies in the
justice of other economists.
is a science since its laws have widespread soundness such as the law of
diminishing returns, the law of diminishing marginal utility, the law of demand
etc. It is called as a science since its self-remedial nature. It goes on
amendments in the dawn of new specifics based on interpretations. Hence
Economics is a science like any other science that has its own generalizations,
theories or laws of economics which traces out a casual relationship between
two or more phenomena.
practical application of scientific techniques is the Art of Economics. Some
economists consider economics as a science and art while few others as science
and applied science. It is considered as newest of science and oldest of arts
and the queen of all the social sciences.
As an conclusion,
Economics is concerned with human well-being as well as ethical values. It is
science and an art, since the scientific principles are applied practically. It
is both positive and normative science since the actual happening and the future
happenings are dealt. Hence the scope and nature of economics deals in with all
the above as explained by economists.