Scribd
Upload
2K views3 pages

Historical Background of Economics

The document provides background information on economics. It discusses the origin of the word "economics" from the Greek term "Oikonomia" meaning household management. Two major contributors from the classical period, Adam Smith and David Hume, developed general equilibrium theory and the quantity theory of money respectively. From the neoclassical period, William Stanley Jevons introduced marginal utility theory and Irving Fisher contributed to utility theory and intertemporal choice. Economics is defined as the study of allocating scarce resources to satisfy unlimited wants. It is considered a science because it applies scientific methods to analyze production, distribution, and consumption using evidence-based research. Economics relates to history by comparing past and present economic conditions, and to political science through

Uploaded by

Prin Cess
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
2K views3 pages

Historical Background of Economics

The document provides background information on economics. It discusses the origin of the word "economics" from the Greek term "Oikonomia" meaning household management. Two major contributors from the classical period, Adam Smith and David Hume, developed general equilibrium theory and the quantity theory of money respectively. From the neoclassical period, William Stanley Jevons introduced marginal utility theory and Irving Fisher contributed to utility theory and intertemporal choice. Economics is defined as the study of allocating scarce resources to satisfy unlimited wants. It is considered a science because it applies scientific methods to analyze production, distribution, and consumption using evidence-based research. Economics relates to history by comparing past and present economic conditions, and to political science through

Uploaded by

Prin Cess
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 3

Historical Background of Economics

1. What is the origin of the word economics? From the Greek word Oikonomia This means Management of the household, administration 2. Give two contributions in the classical and neo-classical periods and cite 2 economic theories they developed. Two contributors of economic thoughts in the Neoclassical period and their theories a. William Stanley Jevons- His major contribution to economics was his marginal utility theory of value. Jevons held that value was determined by utility, and demonstrated the relationship in mathematical term. b. Irving Fisher- Fisher made important contributions to utility theory and general equilibrium. He was also a pioneer in the rigorous study of intertemporal choice in markets, which led him to develop a theory of capital and interest rates. His research on the quantity theory of money inaugurated the school of macroeconomic thought known as "monetarism." Two contributors of economic thoughts in the Classical period and their theories a. Leon Warlas General Equilibrium Theory he is the one who explained how much of each good is created and how the price of each good is related to every other good. For example, general equilibrium theory will try to tell us what factors affect the hours of work by every person in the United States, the numbers of cell phones produced in Finland, and the number of hours an American would need to work to be able to afford a holiday in Boracay.

b. David Hume Quantity Theory of Money he a Scottish philosopher and also a economist who was a contemporary of Adam Smith. This theory is about money prices as opposed to real quantities and relative prices. It aims to tell us what determines ;how much dollars an average person will earn for an hours work, or how much pesos you will have to pay for a cell phone and the money cost to have a holiday in Boracay. The quantity theory of money is also used to understand what determines the inflation. 3. Define Economics. the study of the proper allocation and efficient use of scarce resources to produce commodities for the maximum satisfaction of unlimited human needs and wants. Is a social science that analyses the production, distribution and consumption of goods and services. Why is Economics considered as science? Economics is to be considered as a science because it applies scientific methods to study behaviors. 4. Explain the relationship of Economics to 2 social Sciences. History - history is very important to economics. Through history, we are able to compare the things that happened in the past and correlate. them with what is happening at the present time.

Political Science the relationship between them is because the government has the ability to control the economic status of its country, or it depends on how the government functions. For example, North Korea is a communist country. Their leader only prioritizes the Military equipment of their soldiers such as tanks, battle ships and even nuclear weapons, even though their people starves to death or suffer the old fashioned way of living. And they dont allow products imported from other countries and its forbidden to use internet, computers or even cell phones, and thats why they dont progress. Unlike the Philippines, our government prioritizes the economic growth instead of the militaries. Thats why we dont have much weapons like them, because we are not the type of country that is being attacked everyday so we need to spend the whole fund making bombs even if the masses die.

You might also like