The word "economy" is derived from the Greek word "oikonomia," which means "management of a household." It is composed of:
"oikos": house, household
"nomos": law, management
In ancient Greece, "oikonomia" referred to the practical management of a household, including its finances, resources, and members.
Meaning:
General Definition: Economy refers to the system of production, distribution, and consumption of goods and services within a society.
Modern Definition: In modern economic theory, the term "economy" encompasses the behavior and interactions of individuals, firms, and governments in the production and exchange of goods and services.
Origin:
The concept of economy can be traced back to ancient civilizations:
Ancient Greece: The Greeks developed theories about household management, resource allocation, and the role of government in economic affairs.
Ancient Rome: Roman writers expanded on the Greek economic ideas and introduced concepts such as taxation and public finance.
Middle Ages: During the Middle Ages, economic thought was influenced by religious and feudal ideas. St. Thomas Aquinas argued for a just price and fair wages.
Mercantilism: In the 16th and 17th centuries, the development of trade and commerce led to the rise of mercantilism, an economic theory that emphasized the importance of accumulating gold and silver.
Classical Economics: In the 18th and 19th centuries, classical economists such as Adam Smith developed theories about market forces, free trade, and the division of labor.
Contemporary Economics: Economics has evolved into a modern social science, incorporating insights from disciplines such as psychology, sociology, and mathematics.
