A Students Guide to Economics Written by Paul Heyne
When you first thought about Economics, what did you think of? To me it was pretty much the study of money, as simple as that. I thought it would be interesting to ask a few people what their thoughts were and I heard many different definitions from as simple as “Money” from a family member to “To me it is the state of well being - money, housing, unemployment, industry etc.” told to me by a coworker. The true definition of Economics is the study of how individuals transform natural resources into final products and services that people use. This definition is quite a bit different than what I thought it would be, so I was very interested to read the monograph A Students Guide to Economics, Paul Heyne and hopefully learn how this definition came to be. As I was reading the book I found that the changes came and were documented by many different economists and were explained in many of the publications that those economists had written.
In the monograph A Students Guide to Economics, Paul Heyne describes the history of economics and how this definition evolved to what it is today. The book starts out with the “discovery” of the Economics. In 1776, Adam Smith was the first person to question economic growth with a book titled Inquiry into the Nature and Causes of the Wealth of Nations. Adam Smith summed up economics as “the volume of the nation’s annual production will depend primarily on the skill, dexterity, and judgment with which people apply their labor to the natural resources available to them. I take this as, in a good economic society, people will use the natural resources personal talents wisely. Smith also states that everyone is a merchant, by this I think he means that with every transaction, you are making a trade. For example, if a shoe maker sells a pair of shoes, the money that is paid for them is not really the trade, the leather that he buy with the money so he can make...
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