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Economics & Economic Systems

ByBritannica Publication

People have tried to dene “economics” for centuries, but it’s proven to be an elusive concept. Despite the diculty in dening it, experts have long agreed that economics deals with certain basic premises. Economics is the social science concerned primarily with the study and explanation of the production, distribution, and consumption of goods and services. Economics as we know it has its roots in the eighteenth century. In 1776, Scottish philosopher Adam Smith published An Inquiry into the Nature and Causes of the Wealth of Nations. Smith’s book is about economic growth and the policies that can encourage or deter it. Smith recommended economic policies that would promote competition among private businesses. His ideas formed the foundation of classical political economy. Englishman David Ricardo published Principles of Political Economy and Taxation in 1817, in which he introduced the concept of the economic model. Ricardo’s theories centred on the idea that economic growth will eventually be obstructed by the rising cost of cultivating food on limited land. German philosopher Karl Marx is oen considered the last of the classical economists. Marxian economics posits that value and prots are a result of human labour alone. is idea was oen used to criticize the class divisions that arise from capitalism. In the late 1800s, economists from Austria, England, and France initiated a revolution in economic thinking. ese economists became known as marginalists. is name comes from their marginal utility theory of value, which attempted to explain prices on the basis of the behaviour of consumers in choosing among increments of goods and services.


Publication Date
Jul 11, 2021
Business & Economics
All Rights Reserved - Standard Copyright License
By (author): Britannica Publication



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