Concept in Definition ABC

The concept of economy derives from the Greek and means "administration of a house or family”. As a science, it is the discipline what studies the relations of production, exchange, distribution and consumption of goods and services, analyzing human and social behavior around these phases of the economic process.

Although it is a social science since its object of study is human activity, the economy has a set of techniques based on scientific - mathematical practice, such as analysis financial As such, economics has multiple concepts that aim to explain becoming - sometimes, arbitrary - of national and international systems based on political, social and cultural For example, explain how changes in the value of an international currency such as the dollar are intrinsically linked to the establishment of a politics at the local or regional level.

The economy deals with the resources available to man, whether natural or artificial, which serve to satisfy their needs and, based on this premise, their ability to be exchanged or used as goods economic. The resources that are analyzed by the economy must be scarce and have more than one possible purpose, so that they imply a dilemma and, thus, a cost.

It is common to hear the words macroeconomics and microeconomics. What do these two concepts refer to? Macroeconomics focuses its study on large-scale economic processes and, in general, goes hand in hand with the political and social analyzes that can be made of a given country, continent or region of the world. For example, studies on the economic development of European countries after the post-war period. On the other hand, microeconomics is in charge of small or medium-range processes, and in general, they are related to what the market is internal development of a country, the development of small and medium-sized enterprises (SMEs) or the economic / human development of a certain population or community of a country.

One of the main indicators economic factors regarding the development of a country is the Gross Domestic Product (GDP) which is, at large traits, the difference between the wealth produced by a country and the expenditures produced by the public. Social reality has a lot to do with these indices, since the countries with the highest level of GDP generally have a solid industrial production, high literacy rates, low infant mortality rates and life expectancy greater than 65/70 years. On the contrary, the opposite is indicated by these rates in countries with low or scarce GDP.

For the understanding of the economy as science there are different schools, among them: the objective or Marxist, which understands that it is the science that studies the social relations of production; the subjective or marginalist; and the systemic, which proposes that it is the field of communication in which economic systems are formed. Neoeconomics can also be mentioned, which seeks to integrate the various variants, such as business, spatial or international economics.

Since the late 1970s, with the restructuring of the capitalism after the oil crisis, and the end of the "golden 30" years after the end of World War II, the Political economy saw the light as a branch of the economy that seeks analyze and study the economic processes according to their relationship with the decisions and political processes of the different regions of the world.

From the '70s it is also when within the economy, two important activities arise: one, is the related to the service sector or tertiary activities, such as tourism, gastronomy, computing, and in itself, all commerce. On the other hand, the foreign exchange market, with the consequent appearance of the financial market, with large corporations engaged in the purchase / sale of shares, such as the famous US corporation Goldman Sachs.