The word ‘economics’ is derived from the Greek οἶκος, oikos and νόμος, nomos meaning household and household management. So, in other words, economics is the study of household management. Economics also refers to a social science that examines how societies decide how they use their resources (both natural and human) to achieve their goals which may range from personal needs (such as food and shelter) or national prosperity.
What are the Different Types of Economics
neoclassical economics-Is way of thinking about economic issues that builds on the work of Adam Smith and other classical economists. Neoclassical economics stresses the importance of market competition and the role of prices in coordinating economic activity. It also emphasizes the importance of individual decision-making and the role of incentives in shaping economic behavior. Neoclassical economics has been the dominant approach to economics for much of the past century, and it remains influential today.
Keynesian economics-Keynesian economics is a theory of aggregate demand and output. It was developed by British economist John Maynard Keynes during the 1930s. Keynesian economics argues that output and employment are determined by aggregate demand, which is the sum of consumption, investment, government spending, and net exports. If aggregate demand is too low, then output and employment will fall. The opposite is also true: if aggregate demand is too high, then output and inflation will rise. Keynesian economics also argues that government spending can help to stabilize the economy. For example, if the economy is in a recession, then the government can increase spending to boost aggregate demand. Conversely, if the economy is overheating, then the government can reduce spending to prevent inflationary pressures.
Marxian economics-Marxian economics is a branch of economics that is based on the ideas of Karl Marx. Marx was a German philosopher and economist who lived in the 19th century. He is best known for his work on the Communist Manifesto, which outlined his vision for a society in which there would be no class distinctions. Marxian economics focuses on the ways in which economic activity is shaped by class relations. In particular, it emphasizes the ways in which the ruling class controls the means of production and exploits the working class. Marxian economics has been used to critiques capitalism and to propose alternatives to it. While it has been influential, it has also been controversial, and many economists do not consider it to be a valid form of economics.
Post-Keynesian economics-Post-Keynesian economics is an economic theory that was developed after World War II. The theory is named after British economist John Maynard Keynes, who is considered one of the founders of modern economics. Keynesian economics focuses on the role of aggregate demand in the economy and argues that government intervention is necessary to maintain full employment. Post-Keynesian economics build on Keynesian economics and argue that there are manyMarket failures caused by imperfect competition. The theory has been influential in the development of economic policies in countries such as the United Kingdom, Sweden, and Japan.
What are the different Economic Indicators
Use Economic Thinking to solve Problems