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Political Economy |
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The economy of the world is changing like anything. Economy is a broader term and is very complex. Economy has various elements which determines a country's development. The system of production, exchange and consumption is called economy. Political economy is one of the types of economy. Political economy aims at giving equality and proper consumption of goods and services. Political economy is a branch of social science which aims at interrelationships between economic and political institutions. Political economy helps in studying and explaining the ways how various sectors of government can affect the allocation of scarce resources.
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Political economy looks into the laws and policies through which the scarce resources can be allocated in a proper way. It also analyze whether the behavior of the people are according to the economic system or not. It also checks the the present economic system. The main aim of the political economy is to look after the well being of society. Economy has became a main concerned for almost all countries of the world. The social life of a country is largely influenced by the country's economy. Political economy is said to be originated in the 18th century. At that time it was used to study the economies of the state.
Many political economist in early times stated that labor is the source of value. The term political economy was first used in England during 18th century. The main advocates of this type of economy were Karl Marx, David Ricardo and Adam Smith. The development in the technology is influencing economic and social relations of the country.
In nineteenth century the term political economy got a broader meaning. After industrial revolution the term political economy was looked in a different way. Political economy helped in solving many problems. Law, economics and political science are some of the main elements of political economy.
Political economy shows how a how politics can affect the common economic interest of a group of people. Development is taking place every where and so it is affecting the social and economic life of the society. Political economy also checks at the proper production and distribution of resources. In todays world economy is mainly concerned with market and there is no space for politics and history. Both economist and political economist have always disagreed on what is important market, production, etc. Many theories of political economy are also used in other types of economy. Law is necessary in all political actions. Many economic activities are done through rules and regulations imposed by government. |
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