historical background of economics
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8/13/2019 Historical Background of Economics
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b. David Hume Quantity Theory of Money he a Scottishphilosopher and also a economist who was a contemporary of Adam
Smith. This theory is about money prices as opposed to realquantities and relative prices. It aims to tell us what determines
;how much dollars an average person will earn for an hours work, or
how much pesos you will have to pay for a cell phone and the
money cost to have a holiday in Boracay. The quantity theory of
money is also used to understand what determines the inflation.
3. Define Economics.the study of the proper allocation and efficient use of scarce resources
to produce commodities for the maximum satisfaction of unlimited
human needs and wants.
Is a social science that analyses the production, distribution andconsumption of goods and services.
Why is Economics considered as science?
Economics is to be considered as a science because it applies scientificmethods to study behaviors.
4.Explain the relationship of Economics to 2 social Sciences.History - history is very important to economics. Through history, we
are able to compare the things that happened in the past and
correlate. them with what is happening at the present time.
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Political Science the relationship between them is because thegovernment has the ability to control the economic status of its
country, or it depends on how the government functions. For example,
North Korea is a communist country. Their leader only prioritizes theMilitary equipment of their soldiers such as tanks, battle ships and
even nuclear weapons, even though their people starves to death or
suffer the old fashioned way of living. And they dont allow products
imported from other countries and its forbidden to use internet,
computers or even cell phones, and thats why they dont progress.
Unlike the Philippines, our government prioritizes the economic growth
instead of the militaries. Thats why we dont have much weapons like
them, because we are not the type of country that is being attacked
everyday so we need to spend the whole fund making bombs even if
the masses die.
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