Economics and Political sciences

Topic 4. Economics and Political Science

​ECONOMY

Economy is related to the social interactions that occur since goods are produced until they are consumed, that is to say, where the raw material is removed, how it changes in different products, how are products distributed and sold.

​

The word economy has its origins in the Greek language oikonomia, which means the direction or organization of a house; economists study the reason why a company decides to produce goods and exchange them for money and how people interact and cooperate to this end

Neoclassical. Its main representative is Alfred Marshall. This theory developed concepts such as offer and demand, price elasticity and the functioning of the market. It also proposed the factors of production land, labor and capital; it added the industrial organization element.

Classic economy. Main representatives are: Adam Smith, David Ricardo and John Stuart Mill. This theory proposes that the State should not intervene in the way markets work and suggests that the pursuit of economic gain drives companies to produce more. The economy must be flexible so that markets are balanced on supply and demand. This theory speaks of perfect competition in all markets.

​Economic theory developed in mid XVIII century, the main methods or schools that emerged are:

Physiocracy. Represented by Francois Quesnay and Jacques Turgot, was the theory that made the first attempt to systematize the economy; among its main ideas we find that the source of wealth is the land, that is to say, that a nation is richer as more land and agricultural production has. This theory stated that societies are governed by natural laws; therefore the fate of economy depends on nature and not the State.

Scientific Socialism. Its representatives are Karl Marx and Friedrich Engels. This theory considers work as a source of wealth, is a critique to capitalism and the bourgeoisie. The owners exploit the worker in means of production. This theory proposes the disappearance of social classes and the absence of capital accumulation.

​

​THE OBJECT OF STUDY OF ECONOMY

Is the optimal utilization of natural and human resources to achieve a society that meets mankind needs, such as food, clothing, shelter, health, education, recreation, facilities, among others.

​The art of organizing and managing the income and expenses of a company.

Business economics

​

​Managing all the resources available to the state; activities of the citizens of a state.

​​National economy

​

​When the state intervenes in all economic aspects.

Economic interventionism

​

POLITICAL SCIENCE

The word politics comes from the Greek politike which means “relating to citizens, state and its composition as a community”.

political science is in charge of studying the way the state or government carries the affairs of a society.

It relates very directly to the branch that holds power, or the way it holds the power. This science seeks to identify, analyze, explain and criticize the political processes taking place in a society, considering the kind of government, how it was formed and how individuals attain positions of power within a particular government.​

​

​Is understood as the power conceded to an individual or group to exercise strong population control over a territory, ultimately by force.

POLITICS​

​

1. Struggle for the power.

2. Institutions through which power is exercised.

3. Reflection on its origin, structure and basis.

​​Politics can be understood in three basic ways:

​

​THE OBJECT OF STUDY OF POLITICAL SCIENCE

Is the power relation that is exercised in a society to maintain or change the direction of the State. In other words, politics study the relationship between the rulers and ruled