Static Model of Production and the Evolution of Economics

Economics is the social science concerned with the production, distribution and consumption of wealth. The word economics is derived from the ancient Greek word ‘Oikonomia’. This roughly translates to household management. The ancient Greeks used oikonomia to refer to the organizing of activities in a household and to larger political units as well, such as city-states. Oikonomia, as used in ancient times, can be thought of as an early image of the idea of production. In one way or another societies have always produced, traded, consumed and distributed products and services. Economics and human activity are intimately related. The major divisions of economics are ‘Microeconomics’ and ‘Macroeconomics’.