Types of Economics

Types of Economics

The Living Legend
Ahmad Javed Kamran Amiri
Dated: Saturday 2^nd November 2019 

Economics definition According to me (Ahmad Javed Kamran Amiri)

1.   Economics is the science of using limited resources based on a well-developed plan/program to eliminate the unlimited needs of mankind.
2.    Economics is the science of evaluation and selection (Economics is the science of optimal use of scarce and rare resources which are at hand.)
3.    Economics is the science of profit and loss.

The science of economics has not yet been recognized as a fully developed science. So the idea that economics is not an evolved science but endless is valid.

In general, the various definitions and theories of economics over time can be summarized in four groups: 1- basic definitions, 2- classical definitions, 3- neoclassical definitions, 4- modern definitions.

1. Early Definitions:

The science of economics was in its infancy until the mid-eighteenth century. At that time, economics was a combination of political, moral, philosophical, and logical disciplines. Ancient Greek philosophers, Plato and Aristotle, argued that the science of economics was the art of family management. The science of economics was advanced to the position of "political economy" and was intended to govern the wealth of nations and states.

2. Definitions of the Classics:

Smith, the father of economics, defines the subject of economics as a study of the nature and causes of the wealth of nations. He simultaneously calls economics the "science of wealth." Most classical economists (second half of the eighteenth century) favored the definition presented by Smith. They limited the purpose of economics to achieving material wealth and enhancing the welfare of nations.

3. Neoclassical Definitions:

Alfred Marshall, an economist and architect of the neoclassical school, has led economics to the study of human behavior and has attempted to provide a more comprehensive definition of economics from this point of view. Economics on the one hand is the study of wealth and on the other it is part of the study of human economic activities.

4. New Definition:

Accordingly, "the science of economics is the science that studies human behavior as the link between the unlimited needs and the factors of the rare and scare production which have many uses." Economics in this definition refers to the allocation of scarce resources between their various uses.

A. Microeconomics

A branch of economics that analyzes the economic behavior of individual decision makers, such as consumers, resource owners, and business entities in a free economy.

B. Macroeconomics

A branch of economics that examines the economic system in terms of the variables of greatness and the relationship between them and examines the behavior of the general variables of the economy such as the level of production, the level of prices, and the growth of production.

i. Underground Economy

A set of economic activities that are far from the eyes of the government and in a state of escape from the current laws and regulations of the country.

* These economic activities (underground) are not acceptable in calculating gross national product.

* The activities carried out in this economy are of two types:

1. The First Group

  Activities are in themselves unlawful and illegal, since drug trafficking, hidden secrets, and the production of alcoholic beverages, especially in Muslim societies.

2. The Second Group

  Activities that are not illegal and illegitimate in themselves, but are only illegal and unofficial because of the limitations of current laws and regulations; because human trafficking...

ii. Traditional Economy

An economy in which a simple means of production is used, and productive activities are relatively limited and based on the sciences and techniques before Newton.

* In this economy, markets are generally limited, which is why most households are most in need of their own, and their production is equal to their consumption.

In production, more capital than labor is used, and the agricultural sector is more of a sector than industry and services, and most importantly, in the traditional economy, communication is limited.

Economic Tools

Statistics that comprise the collection, analysis, and interpretation of a variety of numerical data; accounting for the relationship between production, prices, profit, inventory, level of efficiency, and costs; and mathematics that maps geometric and imaginary markers for The expansion of advanced economic theory is used.

Economists are interested in all human phenomena in relation to activities that are done to meet the needs, and are constantly seeking ways to explain the economic significance of past events and discover the most efficient way to achieve the desired goals.

Economic analysis strongly relied on "modeling". Modeling is a simplified approach to the economic world that allows the use of deductive logic to study the useful hypotheses of generalizing the real world conditions. To confirm and validate the hypotheses that have been developed in modeling, economists are doing "empirical research" based on the gathering and analysis of the actual information available.

Colonialism

The Arabic term and in Bonn mean to be called. But today, colonialism means the influence of the powerful countries in the disadvantaged countries on the pretext of building and constructing. But colonialism has usually been sought to plunder other countries. Colonialism is the policy of imperialist governments aimed at the exploitation of the peoples of other countries, the creation of economically declining economies. Imperialism is an obstacle to the consolidation of their domination of the brain, economic and cultural development of these countries. Of course, in the past century, before the emergence of imperialism, there was colonization of other lands, but we have noted in our definition of colonialism in the twentieth century that itself, in the form of the lands of the world and the creation of colonial emperors, is one of the characteristic features of the imperialist era. (Wikipedia)

1. Practical Economics or Engineering Economics

He focuses his attention on the practical concepts of economic principles and theories in order to make a difference in the economy. An explanatory economy tries to compile and classify data types, facts, and events related to a particular aspect of the internal problem of an economy.

To concentrate on the direct thinking of the economy, the combination of the fallacy should be avoided.

For example: If agriculture is so lucky to produce a particularly exceptional product in one year, it can be concluded that its revenue will increase, but the belief that such an outcome is true for all farmers in a group is true. It will be wrong. In fact, if all farmers succeed to produce over-the-counter annual production, their income is likely to be reduced, assuming that the government did not take action to fix the price. In other words, generalization, although it is quite accurate at a level of economic analysis, is not likely to be correct for other levels of the economy.

2. Atomic Economy

The economy is about the scope of an economic unit. This economic unit was used as a consumer, manufacturer and recall person in classical theories. In the nineteenth and even early twentieth-century worlds, economic systems under the influence and domination of a particle economy limited the scope of government activity.

3. Positive Economy

Practical economics, real economy, economic science, which is based on investigative facts, is expressed by reference to facts. The study of those categories and economic issues that can at least be verified through systematic observation and experimentation without judgments based on mental values. Generally, the positive economy is descriptive and includes definitive conclusions (such as too much unemployment) or conditional conclusions such as (the unemployment rate is reduced).

4. Rental Economy

An economy that is a feature of the Feudal period. In this way, Feudal rented his money or land. The owner bought property rights by buying a property, and society would not benefit from it.

5. Social Economy

Economics in relation to social issues. An economic entity that seeks to explore the ways and means of welfare of human society. A branch of economics, in which the use of economic principles in relation to social issues is spoken. The purpose of the social economy is to provide housing, health, nutrition, how to regulate labor relations and the employer, and so on.

6. Integration Economy

Integrated economy. Refers to a situation in which different parts of the economy, such as industry and agriculture, are interdependent.

7. Orthodox Economics

The economy is in favor of the government's lack of market intervention.

8. Free Economy

Let the economy go. It means that the government should release economic affairs. An economy in which major economic flows and operations are managed by the private sector, regardless of direct supervision and government activity. An economy in which the state does not interfere in commercial decision-making or consumer choice, and only by providing the means for economic growth. In its extreme form, the government does not interfere in the production and distribution.

9. Experimental Economics

The empirical economy is a branch of the modern economy in which the researchers have tested the economic model in the laboratory and, using existing data and information, is testing the way human behavior is explained.

10. Static Economy

Economics without mobility. An economy in which the forces of supply and demand are in balance and there is no reason to change from production. An economy in which production and consumption year by year is almost constant and unchanged.

11. Islamic Economy

The methodology of the Islamic religion is to regulate the material life of the individual and society and the state and based on the mixed ownership (private, public, state) of freedom (not unrestrained) economic (in productive, distribution and consumption movements) and solid social justice Is. Islamic economics is influenced by several principles of value (the principle of monotheism, the principle of resurrection, the principle of trust in God in the law, the principle of charity, and the principle of moderation). This economy recognizes the provision of material human needs and the creation of prosperity as a vehicle for human evolution. The functional aspects of Islamic economics are based on two distinct, compulsory and ethical aspects. The obligatory part is the law and the ordinances concerning property, taxes, exchanges, production, consumption, etc.) and ethics (i.e., orders and orders for Ehsan, Isaac, Loan, etc.). The domain of this economy is inclusive, and it can be examined in various aspects, such as: the economy of commerce (domestic and foreign trade, pay and transactions, mudarabah, riba, credit, peace, mortgage, cucumber, monopoly, competition, etc.) (Production, industry, work, patents, etc.) The economy of agriculture (production, competitions, etc.), the economy (production, industry, work, patents, etc.) (Farm, breeding, etc ...)

12. The Obvious Economic

This economy is against the hidden economy, which is characterized by the rule of law.

13. Informational Economy

Emphasizes the role of incomplete and costly information in competitive environments and suggests that the prevailing assumption that economic agents are aware of the various features of the market are not so reliable. This new discipline of the economy has led to attention to issues of transaction costs, property rights of uncompleted contracts.

14. Credit Economy

An economy in which there is a gap between receiving goods and paying for it, and exchanges are carried out with documents and credit.

15. Ecological Economics

Ecological economics, in its perspective, natural resources and the environment, are huge fortunes not considered in current pricing.

16. Economics of Education

A branch of economics that examines the proper use of resources in education and helps achieve the goals of the educational system in the most economical way.

17. Economics of Energy

A branch of economics that discusses the proper utilization and utilization of energy resources, and most notably the discussion of non-renewable energies. Part of the economy involves supplying and demanding energy, estimating energy needs and estimating future energy needs at the national and international levels.

18. Internet Economy

The Internet-driven economy makes it easier for buyers and sellers to make prices more affordable, eliminates intermediaries between companies and customers, reduces transaction costs, barriers to entry It reduces economic growth, raises competition, improves the pricing mechanism and closes the economy to full competition.

19. Open Economy

An economy that enters international trade and keeps its borders relatively open, and therefore its foreign trade is relatively high. The open economy is exposed to events outside the economy.

20. Market Economy

An economy in which goods and services are traded on a relative basis. An economy in which the most influential factor in the prices and the amount of product to be supplied is the consumer's decision that he specializes in a particular product at a particular price. An economy in which decisions are made on the allocation of resources and production based on the price of arbitrary exchanges between producers, consumers, workers and owners of the production factors. An economy in which decisions on how the economy should be produced, and how much and at what price, will be automatically and more freely adopted in the market than by public administration.

21. Gift or Free Economy

An economy based on forgiveness means the embedding of institutions and a series of practices that provide capital through grants. In this economy, the rules and conditions in which forgiveness must be made according to which to develop is defined.

22. Public Sector Economics

One of the branches of economics is the analysis of the effects of changes in the income and expenditure of the state (government budget) in the economy. It describes and analyzes the economic activity of the state, and determines how individuals behave in society. The public sector's economy affects the micro and macro economy.

23. Interest-Free Economy

An economic system in which capital, fixed income (rubbish) is not allocated.

24. Planned Economy

An economy in which the state (as opposed to the market forces and price mechanism) is the main determinant of prices and the production and allocation of factors of production among various production projects. An economy in which the state is on the economic stage and guides the economy with a variety of levers and short, medium and long term programs.

25. Closed Economy

An isolated economy in a limited geographic area without interchanging outside. That is, the economy without exports and imports.

26. Health Economics

An area that examines the link between health and resources and its resources to promote it, and the philosophy of using its techniques, ensuring social justice, rational and equitable distribution of resources, maintaining the effectiveness of services to prioritize vulnerable populations, and The need for society.

27. Barter Economy

The economy of the economy. Direct economy. Economy without money. An economy in which the needs of individuals through the exchange of additional goods and services are provided with additional goods and services. Before the money comes.

28. The Hidden Economy (Illegal Economy)

Underground economy. Black economy. Illegal economy. An economy outside of the conventional system of economic flows, and especially the distribution of information and opportunities.

29. Populist Economic

Mass-media economy is a fancier economy and popular economy.

30. Monetary Economics

An economy in which exchanges take place through money and do not play a role in commodities.

31. Monetarist Economy

The economy is a supporter of monetary policy.

32. Perimeter Economy

The dominant economies provide the emergence of economic regions where particular interactions arising from the economic conditions and conditions are freely exerted on them, and as a result, the international investment shrinkage affects them most, as this Nations are lagging behind the factors and means to reduce the severity of the impact.

33. Economics Craft

An economy whose geographic scope is in the city or village, and craft-men in their occupation form job groups and pay for production orders.

34. Experimental Economics

A combination of historical empirical analysis as well as theoretical methods in the test and study of economic affairs.

35. Economic Analysis

An economy that analyzes human behavior in terms of production, distribution, and consumption, in order to gain the power of forecasting economic phenomena.

36. Blackboard Economy

Adam Smith, believing that it is not possible to recognize the behavior of a phenomenon except by observing and touching a phenomenon, is constantly moving from the economy, which itself calls the blackboard economy the real world economy.

37. Economy Measure (Measure Economy)

Is based on a series of measures taken by community administrators based on the rules of the economy in order to improve the country's economic situation and resolve its economic problems and disadvantages.

38. Transport Economics

A new branch of economics that seeks to find the optimum allocation of resources in transportation, the relationship between transport and economic growth, transport pricing, and so on.

39. Descriptive Economy

Economics, which is presented in the form of orders, or interpretations and evaluations of them in a school, consisting of two parts of the economic laws and the economic system.

40. Partial Equilibrium Economy

Market optimization, consumer behavior, producer behavior.

41. General Equilibrium Economics

Study of forces and factors that balance the whole economy.

Source:

           1. Hamkar Economic Terms Dictionary Second Edition 2018, By: Ahmad Javed Kamran Amiri
           2. Hamkar Economic Terms Dictionary First Edition 2016, By: Ahmad Javed Kamran Amiri