THE NATURE OF AN ECONOMIC SYSTEM AND PROCESSES WITHIN A SYSTEM


The study of economics can be approached at different levels. At one level economics is the study of how the economic provisioning, or economic systems, come into being and evolve over time. At another level, economics studies the structure and ways in which a particular system deals with the allocation or provisioning problem. The study of the structure and evolution of economic systems typically is interdisciplinary. It may use a good deal of history, psychology, sociology, law and philosophy in its analysis of the social process of provisioning. When economics is the study of a particular system, it tends to be narrower and focus is on specific processes. In the Western industrial societies, the current focus is on market oriented economic processes and is referred to as “Neoclassical” microeconomics or “price theory.” Its focus is on the competitive behavior of individuals and exchange transactions in a market context.