1. Science that projects and applies measures, formulas and statistics based on experiences and scientific verifications for industrial operation, exploitation of resources, competitiveness of the local currency, distribution of wealth, and international market.
2. Manage assets, and preserve labor, operational and productive health, studying the variables that affect society as a whole.
3. Preservation and management of each person’s assets, particularly savings and expenses.
Etymology: by latin oeconomicson the Greek oikonomiaof oikosreferring to ‘home’, and nemeinfrom ‘manage’, ‘order’.
Grammatical category: masculine noun
in syllables: economy.
Economy
The concept of economy It derives from the Greek and means “administration of a house or family”. As a science, it is the discipline that studies 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 that are based on scientific-mathematical practice, as in financial analysis. As such, the economy has multiple concepts that aim to explain the evolution – sometimes arbitrary – of national and international systems based on political, social and cultural practices. For example, explain how changes in the value of an international currency such as the dollar are intrinsically linked to the establishment of a policy at the local or regional level.
The economy deals with the resources available to man, whether natural or artificial, that serve to satisfy his needs and, based on this premise, his ability to be exchanged or used as economic goods. 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 certain country, continent, or region of the world. For example, studies on the economic development of European countries after the war. On the other hand, microeconomics is in charge of small or medium-range processes, and in general, they are related to what is the internal market of a country, the development of small and medium-sized enterprises (SMEs) or economic / human development. of a certain population or community of a country.
One of the main economic indicators regarding the development of a country is the Gross Domestic Product (GDP) which is, broadly speaking, the difference between the wealth produced by a country and the expenses produced by public spending. The social reality has a lot to do with these indices, since the countries with the highest level of GDP generally have solid industrial production, high literacy rates, low infant mortality rates and life expectancy of more than 65/70 years. On the other hand, the opposite is indicated by these rates in countries with low or scarce GDP.
For the understanding of the economy as a 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 sphere of communication in which economic systems are formed. We can also mention the neoeconomics, which seeks to integrate the various variants, such as the business, spatial or international economy.
Since the late ’70s, with the restructuring of capitalism after the oil crisis, and the end of the “golden 30” years after the end of World War II, Political Economy came to light as a branch of the economy that seeks to 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 related to the service sector or tertiary activities, such as tourism, gastronomy, information technology, and in itself, everything trade. On the other hand, the foreign exchange market, with the consequent appearance of the financial market, with large corporations dedicated to buying/selling shares, such as the famous American corporation Goldman Sachs.
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