Economy

Empirical methods Prescriptive and policy An economy[a] is an area of the production, distribution and trade, as well as consumption of goods and services.

In general, it is defined as a social domain that emphasize the practices, discourses, and material expressions associated with the production, use, and management of resources.

[3] A given economy is a set of processes that involves its culture, values, education, technological evolution, history, social organization, political structure, legal systems, and natural resources as main factors.

[9] The Babylonians and their city state neighbors developed forms of economics comparable to currently used civil society (law) concepts.

Serving a non-market economy promotes a firm's tenure that is legally guaranteed and protected from bureaucratic opportunities.

The rising nation-states Spain, Portugal, France, Great Britain and the Netherlands tried to control the trade through custom duties and mercantilism (from mercator, lat.

[15] He defined the elements of a national economy: products are offered at a natural price generated by the use of competition - supply and demand - and the division of labor.

The Industrial Revolution was a period from the 18th to the 19th century where major changes in agriculture, manufacturing, mining, and transport had a profound effect on the socioeconomic and cultural conditions starting in the United Kingdom, then subsequently spreading throughout Europe, North America, and eventually the world.

[16] The onset of the Industrial Revolution marked a major turning point in human history; almost every aspect of daily life was eventually influenced in some way.

In Europe wild capitalism started to replace the system of mercantilism (today: protectionism) and led to economic growth.

[citation needed] This was explored and discussed by Friedrich August von Hayek (1899–1992) and Milton Friedman (1912–2006) who pleaded for a global free trade and are supposed to be the fathers of the so-called neoliberalism.

[22] With the fall of the Iron Curtain and the transition of the countries of the Eastern Bloc towards democratic government and market economies, the idea of the post-industrial society is brought into importance as its role is to mark together the significance that the service sector receives instead of industrialization.

In a green economy, growth in income and employment is driven by public and private investments that reduce carbon emissions and pollution, enhance energy and resource efficiency, and prevent the loss of biodiversity and ecosystem services.

In modern economies, these phase precedences are somewhat differently expressed by the three-sector model:[27] Other sectors of the developed community include: The gross domestic product (GDP) of a country is a measure of the size of its economy, or more specifically, monetary measure of the market value of all the final goods and services produced.

[38] Today, the range of fields of study examining the economy revolves around the social science of economics,[39][40] but may also include sociology,[41] history,[42] anthropology,[43] and geography.

[44] Practical fields directly related to the human activities involving production, distribution, exchange, and consumption of goods and services as a whole are business,[45] engineering,[46] government,[47] and health care.

[48] Macroeconomics is studied at the regional and national levels, and common analyses include income and production, money, prices, employment, international trade, and other issues.