Economics And The Classical System - 2361 Words

1. Economics would be better described by a variation on the term ‘chrematistique’ rather than our current discipline’s name, which stems from ‘oeconomica’ because there is a â€Å"natural† way of making money and the â€Å"unnatural† way of making money. In the book Teachings From The World Philosophy it states that there are the elements of true wealth but there is also another art of acquisition, which is commonly and rightly called the art of making money (Heilbroner 8). I believe that there is a merit in splitting economics into Marginalist and a Classical approach to economics because the classical system was a circular process between production and consumption and Marginalism is a one-way avenue from production to consumption. If these did not spilt then I believe no one would agree on anything because they are two different views which also I believe gave us the best possible set up because it allowed to perspectives for people to think about. 2. Economics did not exist for many centuries still after Aristotle defined the root ‘oeconomica’ because in the early portion of civilized life there were only two method; traditional and command. Traditional was the passage of tasks/jobs, from one generation to the other, which still holds in some under develop countries and command, which was the enforcement of economic survival by dictatorship. Both of these worked because they were simple and did not need any economic expansion, which means there was no need for andShow MoreRelated The Classical Dichotomy Essays1045 Words   |  5 PagesThe Classical Dichotomy What is the Classical dichotomy? Under what circumstances of disequilibrium did the Classical economist accept that the dichotomy does not hold? Selfishness is a reprehensible human characteristic; yet it is precisely the necessary behavior yielding the greatest possible economic benefit for the entire society according to Classical economics. 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Breaking down Capitalism can reveal an ideologyRead MoreMacroeconomic Theories Of Macroeconomics And Classical Economics999 Words   |  4 PagesMacroeconomics is a branch of economics dealing with the performance, structure, behavior, and decision-making of an economy as a whole, rather than individual markets. This includes national, regional, and global economies. With microeconomics, macroeconomics is one of the two most general fields in economics. There are two major macroeconomic theories that economists use to describe the economy. Those theories are Keynesian and Classical. Each theory has a different appr oach to the economic study of monetary