Functions of economic theory

1. theoretical ();

2. educational;

3. empirical;

4. practical (applied).

Theoretical function - is showing when the scientific summarize and systematize the empirical data, detecting appropriations and principles of the economy. Giving knowledge in the next forms: comprehensions, terms, definitions and methods, also theories, conceptions and doctrines.

Educational function - the people of different professions can to get economic culture. Economic knowledge give to people confidence in the taking optimal economic decisions in different life situations by themselves (buying the goods, floating their savings, looking for a job, using a credit and other). Only on that base can do scientific, objective conclusions and to create a correct life theories.

Empirical function - like any other scientific activity, economic researches have empirical character (from Greece emperia - experience), based on real practical experience. Economists already taking and processing a concrete economical information, looking for a real business processes (increasing, decreasing of production, changes of cost, looking for the moving of capitals, goods, moneys and other).

Practical (applied) function - is to define concrete forms, principles and methods of efficient business process, making a scientific forecasts of the economic processes, and to make the social economic programs to carrying out the effective state policy

Questions:

1 Subject of economic theory

2 The role of the economic knowledge to know a modern world.

3 Describe the main methods of studying economic processes.

4 Interrelaion by “economic theory”, “political economy”, “economics”.

5 Criterion of the validity of economic knowledges.

Date: 2014-12-28; view: 1297