Characteristics of the Economy

The economy is a branch of the social sciences, it can be said that it belongs to the modern or current social sciences, because it barely has a century and a half of existing as such.

This does not indicate that an economy has not existed before, but the study of economics as a science that affects society it can be said that it began in 1776 with Adam Smith who is considered to be the father of scientific economics and who wrote the book "Insignia of the wealth of nations”.

Characteristics of the economy:

Definition.- The economy is defined as the science of managing the house (understanding the house itself, the company and the state as government). The word economy derives from the Greek language, “oikos” = (house or room) and “nemo”= (Which means to manage), ultimately translating okomos as“house management"Or"house management”.

Source.- The origin of the economy can be attached to both human nature and sedentary lifestyle, since these two circumstances together produce the need to manage existing assets to compensate for the times of few harvests, hunting deficiencies, lack of shelter, etc., later the economy was established as a mode of administration of any asset and liability of money and even of Physical goods.

Control.- This is the main quality of the economy, since it must control both the inflows and outflows of economic capital and material capital.

Discipline.- The economic discipline was initially immersed in traditional philosophy and later separated along with the discipline of law from which it was separated due to the needs to exclusively administer the goods.

Profession.- The profession of economics is called "Economist", and it is a bachelor's degree that is delivered to that exclusively manage the economic movements of individuals (natural persons or persons moral). The economy and the administration were separated from the initial discipline of law and the administration was in charge of processes generally industrial, leaving the economy in another branch so that the adequate management of the economic amounts and the taxation to the state.

Types of economy.- Although the economy is the same in all areas and fields, it can be divided into two:

• Common economy
• Government and business economics.

Commerce.- This is the main basis of trade, every merchant must manage at a given time the economy of both merchandise (administration), and money (economy), this is an effect produced exclusively by human civilization and its need to exchange products and even request services.

Credits.- These are some loans made by:

• Individuals
• Banks
• The state

The credits are issued by representatives of the institutions that carry them out with their own capital or with capital from their other clients, the individual in charge To carry out these procedures is the public accountant, who is in charge of signing the borrowed capital outflows and reviewing the economic movements of the customers.

National economy.- This is what is done by managing the assets, natural benefits, agricultural, field, etc., for the benefit of the people who require them.

International economy.- This is the economy that is carried out through international institutions and is managed by economists representing each nation.

Microeconomics.- This is the field of economics that is located in the study of the economic movements of particular or individual entities. In these areas are:

• Consumers
• Companies
• Investors
• Markets and
• Workers among others.

Macroeconomy.- It is the system of economic analysis that covers large fields, such as national and international economy, agrarian economy general, mineral, oil, and areas that influence the general population, whether national or international.

Political economy.- This concept was established in England, by Antoine de Montchrestien, dates from the year 1615 and encompassed all public institutions and philosophical aspects as well as their influence in the social, political and economic world.