History and Development of Economics

In: Business and Management

Submitted By dhainje
Words 1374
Pages 6
The complexity of today’s capitalistic economy did not come around by chance. Since the dawn of man, some form of economics has been in place whether the society acknowledged the system or not. Certain cultural norms and practices can directly influence an economy with out being noticed. Therefore, we will look at evolution of the economy, and how it can influence who we are as individuals. First and foremost, we must know that an economy provides a society with the means to live the lives that we want to live. The economy accounts for all the goods being sold, the regulation of those goods, and the means of how the goods are produced. In other words, the economic system accounts for production and provisioning. We take stuff, make stuff, and get it to each other. However, the economic system does not only deal with the market, it can account for the family as well as tradition. In order to fully understand how an economy works within a society one must recognize the institutions or cultural laws or norms that influence our behavior, whether it is constraining or enabling a behavior. There are four pieces to the institution that create the puzzle called the economy. These pieces are the economic institutions, social institutions, technological institutions, and ideological institutions. The economic institution describes how we acquire the things that we need. The social institution describes the relationships between the people that govern production and distribution. The technological institution describes how we do things that we do such as by the power of machines or manual labor. And finally, the ideological institution describe the way we think about each other compared to those of other cultures. Furthermore, these four segments of institutions create the structure that we call an economy. The earliest form of an economic system started with the nomadic…...

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