An economy is an area of the production, distribution, or trade, and consumption of goods and services by different agents in a given geographical location. Economic agents can be individuals, organizations, or governments, Economic transactions occur when two parties agree to the value or price of the transacted good or service, commonly expressed in a certain currency. Monetary transactions only account for a part of the economic domain. Economic activity is spurred by production which uses resources, labor. It has changed over time due to technology, innovation such as that which produces intellectual property and these factors give context and set the conditions and parameters in which an economy functions. In other words, the domain is a social domain of human practices. A command-based economy is where political agents directly control what is produced and how it is sold, a green economy is low-carbon, resource efficient, and socially inclusive. Today the range of fields of the examining the economy revolve around the social science of economics, but may include sociology, anthropology.
All professions, economic agents or economic activities, contribute to the economy, consumption and investment are variable components in the economy that determine macroeconomic equilibrium. There are three sectors of economic activity, primary and tertiary. Alternate and long-standing terminology distinguishes measures of an economy expressed in real values, such as real GDP, the English words economy and economics can be traced back to the Greek word οἰκονόμος, a composite word derived from οἶκος and νέμω by way of οἰκονομία. The first recorded sense of the economy is in the phrase the management of œconomic affairs. Economy is recorded in more senses, including thrift. The most frequently used current sense, denoting the system of a country or an area. As long as someone has been making and distributing goods or services, there has some sort of economy, economies grew larger as societies grew. The Babylonians and their city state neighbors developed forms of economics comparable to currently used civil society concepts and they developed the first known codified legal and administrative systems, complete with courts and government records.
The ancient economy was based on subsistence farming. The Shekel referred to an ancient unit of weight and currency, the first usage of the term came from Mesopotamia circa 3000 BC. and referred to a specific mass of barley which related other values in a metric such as silver, copper etc
Talcott Parsons was an American sociologist of the classical tradition, best known for his social action theory and structural functionalism. Parsons is considered one of the most influential figures in the development of sociology in the 20th century. After earning a PhD in economics, he served on the faculty at Harvard University from 1927 to 1979, based on empirical data, Parsons social action theory was the first broad and generalizable theory of social systems developed in the United States. Some of Parsonss largest contributions to sociology in the English-speaking world were his translations of Max Webers work and his analyses of works by Weber, Émile Durkheim, and Vilfredo Pareto. Beginning in the 1970s, a new generation of sociologists criticized Parsons theories, viewing his work as socially conservative, since that time, sociology classrooms have placed less emphasis on his theories relative to the peak of his popularity from the 1940s to the 1970s. However, there has been a recent resurgence of interest in his ideas, Talcott Parsons was born December 13,1902 in Colorado Springs.
He was the son of Edward Smith Parsons and Mary Augusta Ingersoll and his father had attended Yale Divinity School and was ordained as a Congregationalist minister, serving first as a minister for a pioneer community in Greeley, Colorado. At the time of Parsons birth Edward S. Parsons was a professor in English at Colorado College, during his Congregational ministry in Greeley, Edward S. Also both Edward S. Parsons and his son Talcott would be familiar with the theology of Jonathan Edwards, the father would become the president of Marietta College in Ohio. Parsons family is one of the oldest families in American history, the familys heritage consisted of two separate and independently developed Parsons lines, which both went back to the early days of America and indeed deeper into British history. On the fathers side the family could be traced back to the Parsons of York, as an undergraduate, Parsons studied biology and philosophy at Amherst College and received his B. A. in 1924. Amherst College had become the Parsons family college by tradition, his father and his uncle Frank had attended it, Parsons biology teachers while at Amherst were Otto C.
Glaser and Henry Plough. Gently mocked as Little Talcott, the gilded cherub, Parsons became one of the student leaders at Amherst, Parsons took courses with Walton Hamilton and the philosopher Clarence Edwin Ayres, both known as institutional economists. They exposed him to literature by Thorstein Veblen, John Dewey, Parsons took a course with George Brown in the philosophy of Immanuel Kant, and a course in modern German philosophy with Otto Manthey-Zorn, who was a great Kant interpreter. Two term papers Parsons wrote as a student for Clarence E. Ayres class in Philosophy III at Amherst have survived and these are referred to as the Amherst Papers and have been of strong interest to Parsons scholars. The first is written on December 19,1922, and is called The Theory of Human Behavior in its Individual and Social Aspects, the second term paper is written on March 27,1923, and is called A Behavioristic Conception of the Nature of Morals. The papers reveal in part Parsons early interest in social evolutionary questions, after Amherst, he studied at the London School of Economics for a year, where he was exposed to the work of R. H.
Tawney, Bronisław Malinowski, and Leonard Trelawny Hobhouse. While studying at LSE he met a young American girl in the common room by the name of Helen Bancroft Walker whom he married on April 30,1927
The Organization for Economic Co-operation and Development defines the employment rate as the employment-to-population ratio. This is a ratio that measures the proportion of the countrys working age population that is employed. This includes people that have stopped looking for work, the International Labour Organization states that a person is considered employed if they have worked at least 1 hour in gainful employment in the most recent week. The National Bureau Of Economic Research states that the Great Recession ended in June 2009, during 2009 and 2010, many areas were still struggling economically, which is the reason the employment-population ratio is still used by both Americans and people around the world. Key terms that explain the use of the follow, Employed persons. Participant rate This represents the proportion of the population that is in the labor force, included in this group are all persons in the civilian noninstitutional population who are neither employed nor unemployed.
The ratio is used to evaluate the ability of the economy to create jobs, having a high ratio means that an important proportion of the population in working age is employed, which in general will have positive effects on the GDP per capita. Nevertheless, the ratio does not give an indication of working conditions, number of hours worked per person, the analysis of the labour market must be done in conjunction with other statistics. This measure comes from dividing the civilian noninstitutionalized population who are employed by the total noninstitutionalized population, in general, a high ratio is considered to be above 70 percent of the working-age population whereas a ratio below 50 percent is considered to be low. The economies with low ratios are generally situated in the Middle East, employment-to-population ratios are typically higher for men than for women. Nevertheless, in the past decades, the ratios tended to fall for men and increase in the case of women, source, OECD. StatExtracts, except as noted Dependency ratio Female labor force in the Muslim world Labor-force participation rate List of countries by employment rate
The Organisation for Economic Co-operation and Development is an intergovernmental economic organisation with 35 member countries, founded in 1960 to stimulate economic progress and world trade. Most OECD members are high-income economies with a very high Human Development Index and are regarded as developed countries, in 1948, the OECD originated as the Organisation for European Economic Co-operation, led by Robert Marjolin of France, to help administer the Marshall Plan. This would be achieved by allocating American financial aid and implementing programs for the reconstruction of Europe after World War II. The OECDs headquarters are at the Château de la Muette in Paris, the OECD is funded by contributions from member states at varying rates. And had a budget of EUR363 million in 2015. It started its operations on 16 April 1948, and originated from the work done by the Committee of European Economic Co-operation in 1947 in preparation for the Marshall Plan, since 1949, it was headquartered in the Château de la Muette in Paris, France.
After the Marshall Plan ended, the OEEC focused on economic issues, in 1958, a European Nuclear Energy Agency was set up under the OEEC. By the end of the 1950s, with the job of rebuilding Europe effectively done, some leading countries felt that the OEEC had outlived its purpose and this reconstituted organisation would bring the US and Canada, who were already OEEC observers, on board as full members. It would set to work away on bringing in Japan. Following the 1957 Rome Treaties to launch the European Economic Community, the Convention was signed in December 1960 and the OECD officially superseded the OEEC in September 1961. It consisted of the European founder countries of the OEEC plus the United States and Canada, the official founding members are, During the next 12 years Japan, Finland and New Zealand joined the organisation. Yugoslavia had observer status in the organisation starting with the establishment of the OECD until its dissolution as a country, the OECD created agencies such as the OECD Development Centre, International Energy Agency, and Financial Action Task Force on Money Laundering.
Unlike the organizations of the United Nations system, OECD uses the spelling organisation with an s in its name rather than organization, in 1989, after the Revolutions of 1989, the OECD started to assist countries in Central Europe to prepare market economy reforms. This programme included an option for these countries. As a result of this, Hungary, the Czech Republic, in the 1990s, a number of European countries, now members of the European Union, expressed their willingness to join the organisation. In 1995, Cyprus applied for membership, according to the Cypriot government, in 1996, Estonia and Lithuania signed a Joint Declaration expressing willingness to become full members of the OECD. Slovenia applied for membership that same year, in 2005, Malta applied to join the organisation. The EU is lobbying for admission of all EU member states, Romania reaffirmed in 2012 its intention to become a member of the organisation through the letter addressed by the Romanian Prime Minister Victor Ponta to OECD Secretary-General José Ángel Gurría
A nuclear family, elementary family or conjugal family is a family group consisting of two parents and their children. It is in contrast to a single-parent family, to the extended family. Nuclear families typically center on a couple, the nuclear family may have any number of children. Family structures of a couple and their children were present in Western Europe and New England in the 17th century, influenced by church. With the emergence of proto-industrialization and early capitalism, the family became a financially viable social unit. The term nuclear family first appeared in the twentieth century. Little is known about how parental behavior and identification processes work, historians have found that nuclear families have been a primary arrangement in England since the 13th century. In England multi-generational households were uncommon because young adults would save money to move out. Sociologist Brigitte Berger argued, the nuclear family had to be flexible and mobile as it searched for opportunity and property.
Forced to rely on their own ingenuity, its members needed to plan for the future and develop bourgeois habits of work, berge mentions that this could be one of the reasons why the Industrial Revolution begun in England, and other Northwest European countries. As a fertility factor, single family households generally have a higher number of children than co-operative living arrangements according to studies from both the Western world and India. There have been studies done that shows a difference in the number of children wanted per household according to where they live, families that live in rural areas wanted to have more kids than families in urban areas. A study done in Japan between October 2011 and February 2012 further researched the affect of are of residence on mean desired number of children. Researchers of the came to the conclusion that the women living in rural areas with larger families were more likely to want more children. Merriam-Webster dates the term back to 1947, while the Oxford English Dictionary has a reference to the term from 1925, in its most common usage, the term nuclear family refers to a household consisting of a father, a mother and their children all in one household dwelling.
George Murdock, an observer of families, offered a description, The family is a social group characterized by common residence. It contains adults of both sexes, at least two of whom maintain a socially approved sexual relationship, and one or more children, own or adopted, of the sexually cohabiting adults. Many individuals are part of two families in their lives, the family of origin in which they are offspring
Productivity describes various measures of the efficiency of production. A productivity measure is expressed as the ratio of output to inputs used in a production process, Productivity is a crucial factor in production performance of firms and nations. Productivity growth helps businesses to be more profitable, there are many different definitions of productivity and the choice among them depends on the purpose of the productivity measurement and/or data availability. Productivity measures that use one class of inputs or factors, in practice, measurement in production means measures of partial productivity. Interpreted correctly, these components are indicative of productivity development, and approximate the efficiency with which inputs are used in an economy to produce goods, productivity is only measured partially – or approximately. At the company level, typical partial productivity measures are such things as worker hours, before widespread use of computer networks, partial productivity was tracked in tabular form and with hand-drawn graphs.
Tabulating machines for data processing began being used in the 1920s and 1930s. By the late 1970s inexpensive computers allowed industrial operations to process control. Today data collection is largely computerized and almost any variable can be viewed graphically in real time or retrieved for selected time periods, in macroeconomics, a common partial productivity measure is labour productivity. Labour productivity is an indicator of several economic indicators as it offers a dynamic measure of economic growth, competitiveness. It is the measure of productivity which helps explain the principal economic foundations that are necessary for both economic growth and social development. In general labour productivity is equal to the ratio between a measure of volume and a measure of input use. This is done in order to avoid double-counting when an output of one firm is used as an input by another in the same measurement, in macroeconomics the most well-known and used measure of value-added is the Gross Domestic Product or GDP.
It is widely used as a measure of the growth of nations. GDP is the income available for paying capital costs, labor compensation, some economists instead use gross value added, there is normally a strong correlation between GDP and GVA. The measure of input use reflects the time and skills of the workforce, denominator of the ratio of labour productivity, the input measure is the most important factor that influences the measure of labour productivity. Labour input is measured either by the number of hours worked of all persons employed or total employment. There are both advantages and disadvantages associated with the different input measures that are used in the calculation of labour productivity, the quality of hours-worked estimates is not always clear
Free trade is one of the most debated topics in economics of the 19th, 20th, and 21st century. Arguments over free trade can be divided into economic, the World Trade Organization was created to open up markets and promote international trade based on the Free Trade paradigm. The WTO creates and monitors agreements to reduce trade barriers, and arbitrates in disputes over foreign market access and its definition of Free Trade is trade on a level playing field, so that the unlimited exchange of goods between countries is not necessarily Free. Therefore, any import restriction makes the domestic society as a whole worse off than it would be with unlimited imports, the artificial handicap of a foreign subsidy seems much less just to local production than advantages deriving from geography, natural resources, or native skill. Electorates often prefer fairplay to Utilitarian considerations, if trade barriers are already low, the threat of a trade war of tit-for-tat tariff increases may reduce the temptation for either partner in bilateral trade to raise import barriers.
It would tend to decrease the power and revenue flowing to government bureaucrats. In the history of trade, two types of arguments have been advanced in favor of allowing purchases from abroad, and free trade in the broader sense. One set of arguments for free trade could be classified as moral arguments listed below, another set of arguments is essentially economic, that free trade will make society more prosperous. These are mostly technical arguments from the discipline of economics, starting especially with Smiths The Wealth of Nations, the 18th and 19th century intellectuals who backed free trade rarely did so under the rubric of increasing material wealth. In many cases this was given as the least important reason for free trade, they argued that international society would be improved by increased commerce. Some of these, and later, sociopolitical arguments are listed here, adam Smith thought that protectionism against free trade was a scam on the public on behalf of producers, carried out in the name of nationalism.
Even if overall economic interests had not been harmed by tariffs, classical economic analysis shows that free trade increases the global level of output because free trade permits specialization among countries. Specialization allows nations to devote their resources to the production of the particular goods. The benefits of specialization, coupled with economies of scale, increase the production possibility frontier. An increase in the production possibility frontier indicates that the absolute quantity of goods. Not only are the quantity of goods and services higher. Free trade policies are often associated with general laissez-faire economic politics and parties, voluntary exchange, by virtue of its voluntary nature, is assumed to be beneficial to the parties involved—why else would they engage in the exchange. Thus, the restriction of voluntary exchange restricts commerce and ultimately the accumulation of wealth in the absence of real-world externalities such as infant industry protection, here is the production possibilities frontier for a fictional country, Country A