Definition of Economy

Philosopher Economics

The economy, for Aristotle, is the science that deals with the way they manage some resources or use existing resources to meet the needs that individuals and groups.

Its subject is the human activity and, therefore, is a social science. The social sciences differ from natural sciences, or that their claims can not be refuted or converted into a laboratory experiment and therefore use a different mode of scientific method. From here its complexity and high level of uncertainty, using approaches or at least defining the trend in the behavior of economic variables, it is risky venture to predict with accuracy close to 100%, the subject of study "the economic subject is highly dynamic and derived notions of what "should be", are typical of normative economics, and as such can not be tested. The economy is constantly moving between the two poles.

Economic science is always justified by the human desire to meet their own ends. This aspect of the definition proposed by Robbins is questionable and is probably the least developed in the history of economic analysis except, perhaps, by the Austrian School and especially for the production of other goods and services. This concept of cost, beyond the purely monetary concept is typical of economists and is known as opportunity cost. To allocate resources should be a criterion to start testing social and economic.

The economy as a science

Before defining the economy as a science is necessary to mention that in economics there are different points of view, according to the approach taken. However, two stand out: the objective approach and subjective approach, therefore, stand the objective definition and the subjective definition, which relate to two theories of value (objective and subjective, correspondingly).

Objective definition or Marxist
The classic definition of the current objective is to Friedrich Engels, who said: "The political economy is the science that studies the laws governing the production, distribution, circulation and consumption of material goods that satisfy human needs.." Karl Marx in turn indicates that the economy is "the science that studies the social relations of production." Also called "the science of sound administration", as opposed to financial considerations. The current objective is based on historical materialism, refers to the work-value concept, by which the objective value originates in the amount of work required to obtain the property. It is historic because it sees capitalism as a social form, or organization for a given historical moment. This definition has spawned a stream of economic thought that today is known as Political Economy.

Definition subjective or marginal
The classic definition of subjective orientation is Lionel Robbins, who says: "Economics is the science that deals with the study of the satisfaction of human needs through goods, being little, have alternative uses including the choice is" .

Systemic Definition
From another point of view the economy can be seen as an area of well-defined communication. This means that the economy is the medium in which economic systems are formed. In this perspective, economic systems are social systems in which communications are communications that are played on compensation or payments. Those communications that make economic sense, are reproduced in economic systems, those that make no sense, are rejected. This sociological view of the economy allows for the understanding of economics as an integral aspect of society.