What does economic theory study? (subject of economics). Questions to prepare for the exam “Economics. What does economics study? What does economics study?

Economic theory (Economics) is the science of choosing the most effective ways satisfying the limitless needs of people by rational use limited resources.

Thus subject of economic theory is the contradiction between and the unlimited nature of human needs.

From the subject of economic theory we can distinguish the first function of the economy: this is finding rational combinations of resources to achieve maximum satisfaction of the needs of society. The second function of economic theory is practical (recommendatory). Based on positive knowledge, economics provides recommendations for action for the implementation of the necessary economic policies by the state.

Depending on the object of study, economics is divided into:

• - a branch of economic theory that studies the behavior of individual economic entities.
• - a branch of economic theory that studies the functioning as a whole.

Macroeconomics became a special branch of economic theory only in the 30s of the 20th century. The basis for this section was laid by the work of John Keynes “The General Theory of Employment, Interest and Money”. In this work, Keynes made an important conclusion that if you find an opportunity to influence consumption and investment on a national scale, then the economy can either be slowed down or accelerated in its development.

On the scale of the national economy, all local markets are closely interconnected. Experience shows that inconsistency in actions in one market along the chain creates problems in other markets. In this regard, in any national economy there is a need to constantly synchronize in time and in economic space measures and actions aimed at developing and regulating all markets. In order to successfully solve these problems, it is necessary to analyze the general equilibrium of the economic system.

General equilibrium (macroeconomic) reflects the balanced, coordinated functioning of all markets.

• Stable growth of national production. The level and dynamics of the well-being of the population, the economic power of the state, export opportunities and political stability in society depend on the volume of national production.
• Stable price growth. Stable prices create a condition of predictability in the economy, stimulate the processes of lending and investment, strengthen confidence in the national currency, and contribute to economic and social stability in society.
• High level of employment. It is one of the main conditions for social tranquility and a high standard of living of the population in the country.
• Achieving an equilibrium foreign trade balance.

To achieve macroeconomic goals, society uses a whole set of tools and levers that are implemented in the course of pursuing a certain economic policy.

• Fiscal policy that uses taxes and government spending to stimulate or discourage production.
• Monetary policy that regulates the size of capital investment, the rate of growth of production and prices by changing the amount of money in circulation.
• The policy of limiting the income of the population by freezing wages and prices is used to combat inflation.
• Social policy
• Foreign economic policy, which allows, with the help of tariffs, quotas and licenses, to regulate the volume and structure of exports, to influence the exchange rate of the national currency and the size of national production.

Normative and positive approach in economics

For a long time, the work of economists included both consideration of various economic laws and principles, and recommendations regarding sound economic policies and building an ideal society. Only in late XIX century, each of these areas became isolated into a separate scientific direction, and a pure (positive) economic theory was formed.

And they combine elements positive and normative economic theory. Positive economic theory deals with facts and does not allow qualitative assessments. It deals with the actual state of the economy and is designed to help formulate sound economic policies. That is, she is engaged in ascertaining facts.

• what consequences does this or that decision of an economic entity lead to;
• by what means the goal can be achieved;
• what will be the price of achieving it?

• explanation and forecasting of economic phenomena;
• study of general economic patterns;
• identifying a cause-and-effect relationship or functional connection between phenomena

Normative economic theory on the contrary, it involves qualitative assessments of what the economy should be like. The normative approach expresses a subjective opinion about what should be.

Economic indicators: flow and stock

Economists distinguish between indicators measured over a certain period of time, that is, having the dimension flow, and indicators measured at a point in time, that is, having a dimension stock.

The time factor plays a big role in the economy. So the value of money for people today and in the future is different. Today's assessment of future economic indicators occurs through the process of discounting.

Discounting is the process of bringing economic indicators of future years to their current value.

In economic theory there is a distinction nominal and real values. Nominal characterize cost economic indicators in current, current prices. Since prices are subject to change, the influence of prices on indicators is often removed before analysis begins. Values free from the influence of price changes, called real. This is how economic theory distinguishes between real and nominal wages. Nominal wages are wages in monetary terms, while real wages are the amount of goods and services that can be purchased with nominal wages.

• Instantaneous - when all factors influencing an economic phenomenon remain constant
• Short-term - when some factors are considered constant, others - as variables
• Long-term - when all factors are considered as variables

Economics is a social science. It studies a certain aspect of the life of society - therefore the dough is connected with other social sciences: sociology, jurisprudence, psychology.

Basic methods of studying economic theory

If the subject of science is characterized by what it studies, then the method is how it is studied.

Method (methodology)- this is a set of techniques, methods, principles with the help of which ways to achieve a goal are determined.

The main research method used by economic theory is modeling of economic phenomena and processes.

is a simplified image of economic reality that allows you to highlight the most important things in a concise, compact form.

This has led to the emergence of many methods for studying economic theory:

• Method of scientific abstraction
  Distraction in the process of cognition from external phenomena, non-economic aspects, highlighting the deeper essence of an object or economic phenomenon
• Functional analysis method
  Function-argument dependency is used to carry out economic analysis and drawing conclusions
• Graphics method
  This method allows you to assess the relationship between various economic indicators and their behavior under the influence of the economic situation being studied.
• Comparative analysis method
  Comparison of specific and general indicators in order to identify the best result
• Economic-mathematical modeling method
  Description of economic phenomena in a formalized language using mathematical symbols and algorithms
• Inductive and deductive methods
  The inductive method is the derivation of provisions, theories and conclusions from facts - from facts to theory. When using the deductive method, economists rely on random observations, logic and intuition, on the basis of which a preliminary hypothesis is formed. Deduction and induction are complementary research methods.
• Method of positive and normative analysis
  The positive method examines the actual state of the economy; the normative method defines specific conditions and economic aspects that are desirable or undesirable in society
• Practical activities
  Carrying out practical activities to confirm the proposed economic hypothesis

Errors in scientific analysis

When modeling economic processes, possible logical errors should be avoided.

• Erroneous construction of evidence based on the false idea “what is true for part ( individual person), then it is true for the whole (for society as a whole)."

For example, increasing wages at a particular enterprise will increase the purchasing power of its employees. An increase in the country as a whole will lead to an increase in prices, and as a result, maintaining the purchasing power of people at the same level.

• The logically erroneous construction "after this, therefore, because of this."

For example, when the value increases, the value decreases. This does not mean that it is always the reason for changes in . The connection may be purely random or due to the existence of some third factor.

Thus, statistics show that a long-term increase in car prices in our country leads not to a reduction, but to an increase in sales. The obvious conclusion arises: rising prices lead to increased sales!? But this is a false conclusion, contradictory, since this example does not take into account the factor of expectation and the growth of income of the population.

Functions of the economy

The emergence of economic science as an independent academic discipline occurred in the 18th century, although its prehistory goes back centuries. Until now, economists continue to argue about what economics is, what it studies, what its functions are, what methods economists use when analyzing economic relationships and patterns.

According to modern understanding - is the science of the laws and patterns of human relations in the process of production, distribution, exchange, consumption and reproduction of material goods and services, as well as the effective use of limited production resources in order to meet people's needs. This understanding of the subject of economics developed during the long historical development of this science.

Like any science, economics primarily performs cognitive function - theoretically explains how the economy functions, what are the causes, nature, consequences of economic processes (how banks make money, what is the essence of inflation, how supply and demand affect prices, etc.). Based on theoretical generalizations real facts economic life economics explains that There is or what May be, formulates the principles of economic command (the so-called positive economic theory).

Prognostic(Greek prognosis - foresight, prediction) function economics is to form a scientific basis for forecasting the prospects of scientific, technical and socio-economic development. It becomes important in connection with the preparation of plans and forecasts for the development of enterprises and the national economy.

The economy performs and practical (recommendatory) function: based on positive knowledge, gives recommendations, offers “recipes” for actions, explains what the economy should be like (normative economic theory). This function is closely related to economic policy.

1. Economics subject

2. Economic research methods

1. Economics subject

A. Economic choice

Economics (economic theory) as a science exists because people's needs are unlimited, while the resources they have to satisfy them are limited. Hence the problem of choice related to the best use of limited resources. All human life is a continuous choice, and when choosing one thing, you have to give up something else.

For example, a buyer cannot buy up the entire store due to a shortage cash. At the same time, he will not buy only bread or only milk; His task is to get the optimal set of benefits for his money.

For its part, the firm cannot produce everything due to the same limitations of its production resources; it needs to distribute limited resources for the production of various goods in such a way as to obtain maximum profit.

Local authorities are not able to build a school, a road, and a hospital at the same time. They also have to choose.

How individuals, firms, and society as a whole make their choices in conditions of limited resources is what economics deals with.

The subject of choice are economic (rare) benefits, i.e. goods, the quantity of which is limited in comparison with the need for them. Rare goods can be divided into two types: production resources and consumer goods produced on their basis. Goods, the quantity of which is not limited in comparison with the needs for them, are called free. Examples could be atmospheric air, clean drinking water for people living somewhere in a Siberian village, etc. As free goods are exhausted, they can become economic goods.

In their reasoning, economists proceed from the hypothesis that rational behavior people. This means that economic agents are able to determine their needs and strive to achieve maximum results with available resources, i.e. To efficient use of resources. Thus, it is usually believed that individuals maximize their personal well-being, firms maximize profits, and the state maximizes the well-being of society as a whole.

At the same time, economists are interested in how economic agents interact with each other when making decisions, and what results these interactions lead to. It is important, for example, to determine how the equilibrium market price of a given product is formed as a result of competition between producers and consumers.

Finally, the task of economic research is to understand how the well-being of economic agents can be improved. It is possible, for example, that to reduce costs or increase production, markets should be made more competitive or government agencies should operate more efficiently.

Thus, economics subject– decisions made in society when distributing limited resources between different options for their use in order to maximize people's well-being.

Economic choice involves answering three main questions:

1). What and how much to produce?

For example, local authorities stopped building a road.

2). How to produce?

The road can be built in different ways. You can hire a bunch of diggers with shovels, or you can use less manual labor and more machines. We are therefore talking about the choice of production technology.

3).For whom to produce?

Once the “pie is baked,” it must be divided. When applied to a road, this means deciding which cars should be allowed to travel on it, whether travel should be paid or free, who should be given travel benefits, etc.

B. Economic costs and sunk costs

In the selection process, the concept of economic costs (costs) arises. It is fundamentally different from the familiar concept of accounting costs. When estimating costs, the accountant records the amount of actual payments made for the resources purchased by the company. Against, economic costs receiving a certain benefit is other benefits, which could be obtained using the same resources, but which will have to be abandoned if the choice is made in favor of this good. Therefore, they are also called opportunity costs or opportunity costs.

Let's say someone decides to estimate the opportunity costs of going to college. First of all, he will probably remember the tuition fees in rubles or dollars. However, the size of the payment in itself does not say much. Whether studying is expensive or cheap can be said only by taking into account the amount of goods that could be purchased with tuition fees. If, for example, a semester costs the same as a new suit a student needs, then the economic cost of studying is equal to the suit. (Sometimes, however, they say just that: “We were on vacation and passed on a new fur coat!”)

In practice, however, economic costs are not limited to cash payments. Studying requires time, during which a student could earn money, renovate an apartment, raise a child, just relax... He refuses all this, deciding to study. Therefore, the economic costs of education also include unearned money (or rather, those benefits that could be bought with this money), a neglected apartment, an ill-mannered child, lost vacation, etc.

It is important to keep two things in mind. First: opportunity costs arise only where there is an alternative. From this point of view, for example, food costs during the period of study are not taken into account as the economic costs of obtaining an education. The fact is that these expenses are not related to training: you want to eat regardless of whether an individual studies or not. Only if studying requires additional costs for food, this surplus is included in the economic costs.

Second: there are a lot of alternative goods. A student can, for example, study economics all evening, or go to a club, or clean an apartment, or watch TV, etc. All this cannot be done at the same time. Therefore, to assess the alternative costs of obtaining economic knowledge, one must take into account the best possible alternative.

To summarize, we can say once again: in order to evaluate the full economic costs of obtaining a certain benefit, it is necessary to sum up all the alternative losses (in the form of the best benefits not received) that one has to bear in connection with this. It is very convenient if these losses can be measured in money. With this approach The economic cost of obtaining a given good is the value of other goods that could be obtained with the most profitable of all alternative uses of limited resources.

Measuring costs in monetary terms is not always easy. It is not easy, for example, to estimate in rubles the value of lost rest or the damage from lack of attention to a child from a mother who is studying. However, people intuitively do this when making this or that decision. A very common phrase: “For that kind of money, I’d rather sit at home!” can be translated into economic language as follows: “The wages received at work are less than my opportunity costs of labor, expressed in the cost of rest, which I will lose by going to work.”

A distinction must be made between economic costs and sunk costs. Sunk costs– these are costs that were previously incurred and cannot be returned .

Let someone be faced with a choice: to study or not to study. To make a choice, he will have to compare all the benefits of learning with all economic costs, related to this. Let's assume that both can be expressed in rubles. Let the benefits be 120 rubles, and the costs – 100 rubles. The benefits outweigh the costs and the student begins his studies.

Very soon, unfortunately, it turns out that the teaching is worse than expected. In this regard, the actual benefits of such education are only 80 rubles. Thus, a new question arises: to continue or quit studying. If the student had known about the poor teaching earlier, he would not have gone to study at all (the costs exceed the benefits), but now the situation is more complicated. Let out of 100 rubles. costs 70 rub. - this is a tuition fee, and 30 rubles. – all other costs expressed in lost wages due to activities, lost rest, etc. After the tuition fee is paid, these 70 rubles, which the student will not receive back in any case, turned from an opportunity cost into a sunk cost. Further they can be ignored.

Therefore, a rationally thinking individual will reason something like this: “Of course, I was deceived by the promise of better knowledge. However, if I take away the documents, I will not receive 80 rubles worth of education benefits, having saved only 30 rubles. costs. As for the 70 rubles already paid, they are lost to me under all circumstances. It’s better to continue!”

So, sunk costs do not influence future decisions. Therefore, economists who study alternative uses of resources do not take them into account.

B. Microeconomics and macroeconomics

Economic theory includes two main parts - micro- and macroeconomics.

Microeconomics studies the behavior of individual economic agents (firms, consumers, savers, etc.) and their interaction in individual markets. Its focus is on the prices and production volumes of individual goods, the choice of an individual consumer, the output and resources of an individual firm, etc.

Macroeconomics studies the national economy as a whole as a unified system. Its focus is on such general indicators of social production as gross domestic product, economic growth, employment and unemployment, inflation, etc.

Three things are important here. First: the prefix “micro” (small) in the word “microeconomics” should not be misleading. It's not about size at all. Microeconomics deals with the behavior and interaction of individual economic agents as the primary links of the economic system. However, these are not only individual consumers or households, but also companies, including giant ones. On the other hand, microeconomics studies the formation of prices for individual goods in individual markets. But we are not necessarily talking about local or even national markets; The world market of any important product is also a subject of microeconomic research.

Second: it cannot be said that microeconomics deals with problems that are less important than macroeconomics. Just as everything big is made up of small things, the functioning of the entire economy and its large aggregates is directly determined by the activities of each of the economic entities and cannot be correctly understood in isolation from the latter.

Third: it is impossible to draw a clear line separating micro- and macroeconomics. Both of these sections of economic theory are closely intertwined, complement each other and imperceptibly transform into one another.

1. Which of the following provisions is taken into account by general economic theory:

1. The subject of economic theory is:

1. In which of the following areas does economics have applied significance:

1. What is characteristic of the economic way of thinking:

1. The economic model is:

1. Which of the following goals has a precise quantitative measurement:

1. If it is stated that two economic goals or trends are mutually exclusive, then this means:

1. If the economy is studied as an integral system, then this is an analysis:

1. What is the economic goal if society seeks to improve the efficiency of the national economy, which has limited production resources:

1. Which of the laws listed in paragraph 11 is studied by the section of economic theory “Microeconomics”?
2. Check the statements related to macroeconomics:

1. Scientific analysis has established that it is possible to overcome the country's economic backwardness through radical structural changes caused by the preferential development of the highest priority industries. What type of science is called upon to formulate such a recommendation:

1. Macroeconomics studies the following topics except:

1. The fundamental question of economics is:

1. Good economic model:

1. The process of focusing only on the most important factors to explain a phenomenon or occurrence is called:

More on the topic Tests:

1. Appendix 4 Tests for students of financial management
2. Section: Control Theory. Recommendations for solving tests
3. Section: Analytical management. Recommendations for solving tests
4. Section: Innovation management. Recommendations for solving tests
5. Section: Investment management. Recommendations for solving tests
6. Section: Financial management. Recommendations for solving tests

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Microeconomics deals with customers, income, prices, profitability, etc. Macroeconomics deals with the economy as a whole, Gross Domestic Product (GDP) and other concepts that are covered in newspapers under the heading "economy". Microeconomics is more useful for managers, while macroeconomics is followed mainly by investors.

2. The law of supply and demand is the foundation of the economy

Whenever there is an increase in the supply of any product, its price decreases, and whenever the demand for a product increases, the price increases. So when you have excess wheat production, food prices should go down and vice versa. For example, in Russia, during the buckwheat harvest failure, the price of this product increased by 400-500% until the market was saturated with the new harvest.

3. Limit of utility

Whenever your quantity of something increases, the possibilities for its use decrease. For example, an increase of 10,000 rubles to your monthly salary of 30,000 rubles will make you happier than when you earn 1 million a month. This is widely used in product pricing.

4. Gross Domestic Product (GDP)

It is the main measure of the size of the economy. It is equal to the sum of the incomes of all people or the sum of the market value of all goods and services produced in that country. For example, the world's largest economy, the United States, has a GDP of about 14 trillion. dollars. This means that each year the United States produces $14 trillion worth of goods and services. dollars.

5. Economic growth rate

Economic growth is usually measured in terms of GDP growth rate, per capita growth rate, and production growth rate of the main sectors of the economy. Economic growth rate are calculated based on data for the previous and subsequent year, as a percentage.

6. Inflation

You've probably noticed that prices for most food products are now higher than in previous years. (measured as a percentage)- These are “economic scales” showing how much goods and services have collectively increased in price compared to last year. In advanced economies, annual inflation is around 2%, which means that on average the price of goods and services rises by 2% every year. In Russia, according to official data, inflation this year was 6%. The fundamental role of Central Banks is to correct inflation and keep it low (but not negative).

7. Interest rates

When you lend to someone, you have a right to expect a return on the money and additional income. This income is called interest. The interest rate is the measure that will determine how much income you will receive. The short-term interest rate is usually set by the Central Bank. In the USA it is currently close to zero, in Russia – 8.25%. The long-term interest rate is set by the market and depends on the level of inflation and the long-term prospects of the economy. The mechanisms used by central banks to control short-term interest rates are called. High interest rates are beneficial to investors, while low interest rates are beneficial to the end consumer. For example, a mortgage loan in developed countries The EU will cost you no more than 3% per annum, since the average interest rate in developed European countries is no more than 2%.

8. How are interest rates, inflation and economic growth related?

There is an inverse relationship between interest rates and economic growth, and a direct relationship between interest rates and inflation rates. So when you increase interest rates, inflation tends to rise. One is good news and the other is bad. Therefore, there is a certain tension in society during the announcement of interest rates. In the US, short-term interest rates are set by , and this is the main economic news in the country.

9. Fiscal policy

The government, to a greater or lesser extent, can influence the economy by regulating the country's budget expenditures. One of the forms of regulating budget expenditures is tax policy. If the government spends more, this can lead to increased demand, which means higher prices. Rising prices lead to increased inflation. Inflation, in turn, forces the government to increase spending. Thus, governments try to spend more during periods of low growth and low inflation and reduce spending during periods of high growth and high inflation.

10. Cyclicality of the economy

Market economies tend to rise and fall with a periodicity of about 7 years. At the beginning of the cycle there is rapid growth, then getting to the top, followed by contraction leading to (a period of negative growth and/or rising unemployment) and finally rise again.

When you engage in an activity, you tend to compare it to better alternatives. For example, when you are agonizing over a project on a Friday evening, you probably think more than once: “Isn’t it time for me to do something else?” The alternative (in this case, a party with friends) carries more weight, and thus is much more attractive than your project. The transition to alternative activities is expressed in “ opportunity cost" - the value of what you sacrificed.

For example, going to a nightclub has an opportunity cost equal to the amount of money spent on this event and the amount of money that a person could have received if he had gone to work instead of the club. If the cost of entry to the club is 500 rubles, food at the club (dinner) costs 1,500 rubles, drinks cost 1,000 rubles, then going to the club will cost 3,000 rubles. If you don’t go to the club, you save 3,000 rubles. But you have to eat anyway, so the money is spent on dinner at home (let it be 500 rubles). Total savings of 2500 rubles. If a person spent 5 hours in the club, and an hour of his work costs 250 rubles, then the potential additional earnings are 1250 rubles. The total opportunity cost is 3,750 rubles.

12. Comparison of benefits

Let's say you work in the Internet technology field and one day a client asks if you can build a website for them. Should you take over this website or would it be better for you to outsource the job to your friend? What will be your decision? A reasonable person should calculate how long it will take to create a website and determine whether he can earn more in this period of time by launching a more profitable project. Then, after calculating all the pros and cons, he can keep the order himself or pass it on to a friend who, perhaps, will make the site more efficient.

If your friend agreed to make the site more efficient, then you, in this case, missed this opportunity due to various circumstances. It's called advantage comparison theory. Your friend has an advantage here, and it makes no sense for you to engage in this matter. Nations, businesses and people should do only those things that they do better, and give the rest to others.

I

exhaust the flax of that labor, the products of which, when exported abroad,
the business brought the country more money than it cost. Physi-
ocrats - representatives of the second school of economic theory
ries (from Greek - power of nature) - F. Quesnay, A. Turgot,
V. Mirabeau, L. Dupont de Nemours - believed that the subject
economic science should be state policy on
creating an abundance of “products of the earth”, that is, the development
agriculture as the main sphere of production. /
Free trade is the third school of economic theory, which
which received a comprehensive justification from A. Smith, D. Ri-
cardo as classical political economy begins to dis-
look at people's behavior in the emerging market
night economy, the basis of which is the laws of the market
ka, as an “invisible hand” (A. Smith), controlling behavior
We eat all commodity producers. The subject of Marxist philosophy
Literary economics (K. Marx, F. Engels) are production
new relationships that develop between people in the process
reproduction, exchange, distribution and consumption of materials
real benefits. The basis of this direction of economic
theories are the labor theory of value and the theory of surplus
permanent cost. Political economy studies the causes
but-consequences in economic processes and phenomena
I. Neoclassical school of economic theory - beginnings
take shape in the second half of the 19th century. like marginalism
(A. Cournot, K. Menger, E. Boehm-Bewerk, A. Marshall, D. Clark,
I. Schumpeter). Marginalism uses marginal values
us to study economic processes and studies the func-
national ties between economic entities, primarily
basically, at the microeconomic level.
Institutionalism was formed in the 20-30s of the 20th century.
(T. Veblen, J. Comons, W. Mitchell, D. Galbraith), including
The subject of economic theory includes institutions - rules and
norms that limit people’s behavior (state, cor-
rations, trade unions, traditions, laws). Keynesianism -
a new school in economic theory arose in the middle
30s of XX century. D. M. Keynes substantiated the need for state
gift regulation of the market economy and mortgage
lived the basics of macroeconomics. Monetarism - limits
the need for government intervention in economic
new life only by maintaining a stable growth rate
money supply (M. Friedman). Since the late 80s, when
14
What does economic theory study?
about 30 post-socialist states have begun the transition
from a planned economy to a market economy, began to take shape
theory of transition economy, the subject of which is
Xia general principles economic behavior of people in
during the formation of the market in post-socialist countries.
Thus, the subject of modern economic
theory is the behavior of economic entities in pro-
process of production and exchange of goods and services under restricted conditions
scarcity of resources, characterized by multivariate
ness of use.
This is where the most commonly used definition comes from:
economic theory as a science that studies human
behavior in terms of the relationship between goals and objectives
limited means that may have different
use (Menger K, Robinet L.).
To analyze the economy, economic theory uses
economic categories and concepts. Economic categories
ries are abstract concepts that reflect in the minds of people
action of real-life economic processes and phenomena
nia. In economic categories and concepts, as defined
logical forms, what is common and essential is highlighted
The only thing that exists in economic phenomena is that they provide
a holistic judgment about a subject. Based on the analysis of economic
economic processes and phenomena, economic theory reveals
economic laws - internal, essential, causes -
but-consequences of economic processes and phenomena.
There are positive and normative economic
theory. Positive economic theory - explores the inter-
and the connections between economic phenomena as they exist: for example,
an increase in prices for a product leads to a decrease in demand for it (with
other things being equal). There is nothing in this statement
normative, that is, value judgments. Regulatory
economic theory studies how things should be. Here
assessments are made - fair or unfair, bad
ho or good, acceptable or unacceptable. Microeconomics
Mics is a branch of economic theory that studies the eco-
nomic activity of such subjects as household
economy and enterprise (firm), as well as interaction
eating these entities in the process of forming larger
structures - industry markets. Macroeconomics studies
functioning of the economy as a whole. On the one side,
15

What does economic theory study?
economy - as production, exchange, distribution and
consumption of material goods and services necessary for
human life, is the object of research
economic theory, but, on the other hand, it, like economics,
economic practice, embodied in economic
activity theory, the result of theory.
The method of economic theory is a means, a way to
knowledge of its subject. When studying economics, use
formal logic with its categories is formed (concept-narrowed
deduction-inference), methods (analysis, synthesis, induction,
deduction, comparison, analogy, hypothesis) and laws (also
childhood, contradiction, excluded middle, sufficient
foundations), as well as dialectics with its principles (inter-
communication and development), categories (single and general, part
and the whole, cause and effect, essence and phenomenon, contains
pressure and form, necessity and chance, possibility
and reality) and laws (interchange of quantity
and qualities, unity and struggle of opposites, negative
negation). Induction is a logical conclusion -
from particular cases to a general conclusion, from individual facts
to generalizations, that is, the derivation of principles from factors
Comrade Deduction is a logical conclusion from a general
to a particular definition.
The study of economics uses general scientific
methods (mathematical, statistical, etc.), as well as meth-
method of abstraction, historical-genetic approach, subjective
object and comparative analysis, economic expe-
riment. Scientifically based experiments make it possible to
ability to choose optimal economic solutions. Method
scientific abstraction clears the object of research from chance
nogo, temporary and reveals permanent, typical, characteristic
thorny features. It forms scientific categories, expresses
essential aspects of the object under study, based on
which economic models are created. Totality
methods of a particular science forms its methodology. Metho-
Dology is the science of the principles of construction, forms and methods
dogs of scientific knowledge or, more precisely, the totality of laws
the forks of scientific thinking, techniques and means of reflecting the laws
numbers of the objective world.
Depending on the prevailing methods, it is formed
empirical or theoretical knowledge focused on
16
What does economic theory study?
study of external phenomena and dependencies between them.
The subject of empirical research is surface-
priority relations of economic reality, priority
theoretical methods of empirical research - generalization of phenomena
leniya and factors, their analysis and synthesis, induction and deduction.
Theoretical knowledge is aimed at identifying the unity of fact
tori, internal structures, relationships between categories
and laws. The subject of theoretical research is
internal fundamental laws of economics
ical activities.
The system of economic sciences includes the following levels:
fundamental, theoretical economic science - eco-
nomic theory; organizational or functional
sciences - accounting, labor economics, marketing,
agricultural economics, etc.; sciences related to
management of economic activities - management,
information technology, etc. Organizational-functional
onal and management sciences, studying empirical formalities
we economic activities, principles, methods and forms
we organize and manage social production,
form an experimental and information base for those
oretic disciplines.
Functions of economic theory: cognitive, (it is co-
is that it allows for a deep and comprehensive study of the
production, distribution, exchange and consumption of material
goods and services at the level of the historical process, to open the
laws and trends of economic development); critical -
allows you to identify the achievements and shortcomings of various forms
production; practical, according to which the theory
not only formulates economic problems, but also decrees-
determines the directions for their solution, determines the fundamentals of economic
tactics, strategy, policy for enterprises
(firms) and for the state as a whole; prognostic -
forecasting economic events, phenomena, future
forms and content of economic processes.

Development of economic theory