Economics and Environment – notes
Economics is the study of the movement of goods and services through society as handled
primarily in our times by a market system that works through prices.
This market system uses these prices as “signals” main way of running the interactions of
suppliers and demanders, which work together (and compete) bringing out the complex
production and consumption of things.
Economics had no direct connection to the natural, physical world; the way in that everything
shows up in economics is in some market (real or theoretical) everything is given a value
through the pricing mechanism: someone has to put a “dollar value” on it.
Economics is a human creation, a particular way at looking at the world.
It is a successful model and explanation for the very complex activities of human beings buying
and selling things, creating businesses, etc.
However this supposed “universal” explanation for everything has problems.
Modern standard economics
-about 200 years old
-created originally to deal with the new economic situation that emerged from the Industrial
-formal beginnings can be dated to publication of Adam Smith’s The Wealth of Nations in 1776