Economics – Definition and Theoretical


 Definition of economics

 Defining economics in a precise and specific way is not an easy matter due to the overlapping of its concepts, and its connection with human life, with intellectual and social data, temporal and spatial conditions, and material conditions, which sometimes agree and differ at other times. It was natural for definitions to differ, according to different trends, schools, and doctrines of economic and social life…

They defined it as “the science of wealth,” “a science that studies conditions of exchange“a science that studies the activity of man in order to satisfy his needs,” and “ a science that studies the facilitation of rare materials. And the forms of transforming these resources,” and “a science that studies the relationship of individuals to each other, and their relationship to things in Their pursuit of material well-being” and “a science that studies the production, exchange, distribution and consumption” and “a science of the laws that govern wealth” …

Thus, the definitions differed, and each definition has a connotation approaching or moving away from the other. The science of wealth means that the science of economics deals with the issue of financial wealth and does not go beyond it.

A science that studies the conditions of exchange, i.e. focusing on how to exchange surplus production, types of commodities, and various goods, after their production.

A science that studies the activity of man in order to satisfy his need, that is, the search for the most effective practical methods by which a person is able to satisfy his desires and satisfy his needs.

A science that studies the facilitation of scarce resources, and the forms of transferring these resources means trying to overcome the existing problem, between the scarcity of resources. A large number of needs or the lack of income and the multiplication of expenditures, and the search for the most successful ways and the most effective methods that guarantee the transformation of relative scarcity to the level of needs, and the matching between lack of income and the increase in expenses.

A science that studies the relationship of individuals to each other, and their relationship to things in their quest to reach material well-being. This means that economics does not study human activity in isolation from things, or things in isolation from humans, but rather studies the relationship between individuals, then the relationship between them and things in pursuit of reaching to satisfy the desires and satisfy the various material needs. As dictated by the reality of economic activity. The relationship between individual’s lies with work, especially in the field of production, consumption, exchange, and distribution… and between them and things lies in the subject of nature and its raw materials.

A science that studies the production, exchange, distribution, and consumption, meaning that economics studies the conditions of wealth in each of its phases, starting with production as the first phase in which materials are transformed into merchandise usable, then circulation, which is the phase in which goods are exchanged between producers and consumers, then distribution. It is the division of income between the parties contributing to its production, then consumption, which is the form in which needs are satisfied with products.

In addition, the science of the laws that govern wealth means that the science of economics does not mean wealth as much as it means the laws that govern it.


 theoretical economics

It intended to study curricula, projects, methods, programs, theories, laws, and economic ideas, in terms of their concepts, and to indicate the type of links that link them, in order to determine or record what exists and present for study, in order to select what is valid for application. It is possible to summarize its most important concerns in the following areas:
1.      Major economic sectors, including studies related to traditional and modern industry, internal and external trade, food agriculture, which is intended to secure social life, and then commercial, which is intended for profit or export.

2.      General theories, including studies related to the state’s public finances, national income, money, and prices… which are the responsibility of the state through its institutions.

3.      Economic planning, which is concerned with the process of programming, designing, preparing projects, and studying them before entering into their implementation. It is the right and jurisdiction of the state whenever it acquires a national character.

4.      Economic policy, which is concerned with studying the principles, foundations, directions, and choices on which the economic direction of the state based… It varies from sect to sect and from state to state… It is objective and practical if I got a state to self-sufficiency and was able to control the economy in isolation from the International Monetary Fund’s policy, the International Bank for Reconstruction and development referred to it, a policy the European Common Market countries.

5.      National accounting, which is concerned with studying how to “evaluate” production, control it and estimate its results… On this basis, the contemporary economy depends on economic efficiency and the estimation of national income.

6.      The history of economic thought, and deals with economic principles, laws, and theories from the point of view of their historical development, in order to benefit the later from the experience of the previous one. He guided by his success points, avoids his failures. In addition, learns about practical theories of intellectualism, as will be detailed.

Secondly, applied economics
It intended to apply the laws, projects, and programs studied by the theoretical economy while working to use the most effective methods and the best means to ensure the development and development of production… It deals with the economic reality as it is in a country or a group of countries, based on applied economic geography, such as the distribution of resources, their production, and consumption in countries or regions…

It embraces what is expressed as a descriptive economy, which focuses on the national economy in a limited period, as seen in the application of a pentagonal design. It approved by the higher departments in the country. We have presented theoretical economics from applied economics because the theory deals with topics from a theoretical point of view before the applied one deals with them from an applied point of view…

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