What is Economy?

Economy (οiκος, which translates to house in the sense of heritage and νέμεωιν, manage) is the social science that studies the social relations that have to do with the processes of production, exchange, distribution and consumption of goods and services, understood such as means of satisfying human needs and individual performance and collective society. Other doctrines help progress in this study: psychology and philosophy attempt to explain how to determine the objectives, history records the change of targets in time, sociology interprets human behavior in a social context and political science explains the relationship power to intervene in economic processes.

Economic literature can be divided into two broad areas: microeconomics and macroeconomics. Microeconomics studies the behavior of individual economic agents, mainly businesses and consumers. The microeconomics explain how to determine variables such as prices of goods and services, level of wages, profit margin and income changes. The agents make decisions trying to get the best possible, ie maximize utility. Macroeconomics examines the aggregate variables, such as the total domestic production, production, unemployment, balance of payments, inflation and wages, understanding the problems of employment level and rate of production or income of a country .