The term economy must be treated from an etymological point of view. It is a Greek word ” oikonoms” which refers to household administration and is composed of ” oikos” (home) and “nemein” which refers to administration .

Conceptions of Economics

Various currents of economic thought have been established over the years . In this way, theories have been developed that range from conception to the development of operating theories. Within the conceptions of economics, it is interesting to highlight the most used and oldest concepts in the doctrine:

Friedrich Engels

It defines economics as the science that is responsible for studying the laws of production , distribution, circulation and consumption of material goods that will allow the satisfaction of the needs of human beings .

Karl Marx

It defines economics as the science that studies the social relations of production.

They are two very complete definitions that have been used for many years because they perfectly described the economy. However, this conception has been changing, because the economy is seen and analyzed from the social point of view in which the processes of production , distribution and consumption of goods and services that allow the functioning of the economic system are found. Being considered a social science, it can be analyzed from various points of view from microeconomics and macroeconomics.


Microeconomics is characterized as one of the diverse forms of behaviors that determine the decisions of the fundamental parts of the economy such as companies , employees and consumers .


Macroeconomics is responsible for analyzing microeconomic processes, taking into consideration the existing variables that influence the economy, such as inflation , unemployment, salary , among others.

Current conception of the Economy

We must see the economy as an economic system, because it includes the set of factors that make it up. An example of this is the people , the institutions, the resources that exist, the infrastructure and all these elements are related to each other. All these elements will determine the production and distribution of goods and services for a society , for a state , or a region.

From there arises the importance of considering the economy as a sub-system, since it allows the linkage and relationship between the other sub-systems (such as the cultural , social and political). Through this interrelationship, the goods and services necessary for the inhabitants of each country can be produced.

This conception should not be left aside the geographical concept that directly affects such as the European economy, the world economy, among others. There are many researchers in this science who affirm that economics includes the study of societies. They can use the scarce resources they have for the production of goods, for subsequent distribution to their inhabitants.

The shortage is closely linked to the economy. Since there are limited material resources, it is not feasible to produce a large quantity of goods. Many times it is not possible to satisfy the needs of the inhabitants of a certain place.

Fundamental aspects to consider in the economy

The economy comes to represent its importance for the lives of the people who live in a certain place.

Among these aspects it is necessary to point out:

  • Consumer price index: This is the price that people pay for goods and services.
  • Monetary policies: refers to the methodology used to adopt currency and exchange rate management measures .
  • Techniques and explanation of the economy at all levels of the population.

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