The task of economic theory is to comprehend, to analyze the complex process of
economic life, to find patterns of its development, to identify ways to solve emerging
problems, to predict possible development options and to mitigate as much as possible
the negative effects of such events.
Economic theory is not a set of ready-made rules on how to act in specific
economic situations. It does not provide ready answers to all questions, does not
guarantee the solution of all problems. The theory is just an instrument, a way of
understanding economic reality. Owning this knowledge gives each person the
opportunity to make the right choice in many life situations, to better understand the
economic, political and social processes.
The practical function of economic theory allows, on the basis of the received
data, to give recommendations, and to propose ways to solve emerging problems.
Usually, such actions are supported by concrete calculations of the results of the
recommendations. This function is closely linked to economic policy.
Thoughts about economic existence arose in antiquity. Man, trying to know the
laws of economic life, investigated the causes of economic phenomena. But in ancient
times economic thought was not separated in the form of a single study, economic
theory as an independent science did not exist. This direction of human life was
analyzed in conjunction with other studies. He studied philosophers, mathematicians,
politicians, but one way or another the emergence of economic science must be sought
in the teachings of thinkers of the ancient world.
The first attempts to theoretically comprehend the economic structure of society
were made in the works of Xenophon (430-335 BC), Plato (428-348 BC), Aristotle
(384-322 BC). In their writings one can see different variants of the theoretical
comprehension of some distinct aspects of economic life.
Xenophon in his work “Oeconomicus” preferred agriculture and condemned
crafts and trade. In the history of economic studies, he entered as a scientist who for
the first time carried out an analysis of division of labor, and speaking of the value of
the product, considered it both in terms of usefulness and its ability to exchange for
other goods.
Plato in his work on the state system gave the state the function of resolving
contradictions between the needs of man and his abilities. Speaking about commodity
production, Plato understood that in the process of exchange there is a comparison of
heterogeneous goods and the complexity of their comparison.
Aristotle used the word economics and investigated two kinds of wealth that, in
his opinion, are found in human society - goods and money, first. At this way of
managing the economy, aimed at increasing the wealth, Aristotle considered immoral
as it gives rise to a desire for unlimited enrichment in man.
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