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Unit 1 Understanding Economics
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Here economists are concerned with the forces determining the income of a country or the level of total investment, and they seek to learn why full employment is so rarely attained and what public policies might help a country achieve higher employment or greater price stability. But these examples still do not exhaust the range of problems that economists consider.
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There is also the important field of development economics , which examines the attitudes and institutions supporting the process of economic development in poor countries as well as those capable of self-sustained economic growth for example, development economics was at the heart of the Marshall Plan. In this field the economist is concerned with the extent to which the factors affecting economic development can be manipulated by public policy.
What is economics?
Cutting across these major divisions in economics are the specialized fields of public finance , money and banking , international trade , labour economics , agricultural economics , industrial organization, and others. Economists are frequently consulted to assess the effects of governmental measures such as taxation , minimum-wage laws, rent controls, tariffs , changes in interest rates, changes in government budgets , and so on.
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The effective birth of economics as a separate discipline may be traced to the year , when the Scottish philosopher Adam Smith published An Inquiry into the Nature and Causes of the Wealth of Nations. There was, of course, economics before Smith: the Greeks made significant contributions, as did the medieval scholastics, and from the 15th to the 18th century an enormous amount of pamphlet literature discussed and developed the implications of economic nationalism a body of thought now known as mercantilism.
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Thank you for your feedback. Introduction Definition Historical development of economics The unintended effects of markets Construction of a system Marxism The marginalists The critics Keynesian economics Postwar developments Radical critiques Methodological considerations in contemporary economics Methods of inference Testing theories Microeconomics Theory of choice Theory of allocation Macroeconomics Neoclassical economics Fields of contemporary economics Money Growth and development Public finance International economics Labour Industrial organization Agriculture Law and economics Information economics Financial economics Other schools and fields of economics.
Written By: Mark Blaug.
See Article History. Definition No one has ever succeeded in neatly defining the scope of economics.
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