From Economics to Political Economy: A Study of Methods
The following general definitions have been provided in textbooks of economics: Economics is seen as the study of resource allocation, that is, of allocating scarce resources among competing ends. Economics according to this definition is also a study of decision-making by individuals or units of agents, such as the family, firm, labour unions, institutions and even government when viewed as a decision-making unit. Whenever decision-making and choices of alternatives specific to agents become the starting point of any economic study, all such agents are assumed to be economically rational beings having full information and thus capable of having full accessibility to and control of their human environment.
KeywordsPolitical Economy Rational Choice Market Exchange Policy Variable Moral Science
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