Nature Of Economics, Praxeology And The General Theory Of Human Action

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Economics Assignment -1- Human Action
Describe 1000 words Nature of economics, praxeology and the general theory of human action, consider the use of thought experiments, the theory of value and time factor. Economics is the study of human action and how to manage the limited resources to fulfill unlimited wants of humans. It is also social science that analyses the choice for sharing limited resources. In economy, there are goods and services, production, consumption and so on. In real life, humans have many unlimited wants. Humans use goods and services to fulfill their unlimited wants. Using goods and services to fulfill unlimited wants is called consumption. Production and consumption are two
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Praxeology is the distinctive method of the Austrian school of economics, popularized by the economist Ludwig Von Mises. It rests on the fundamental axiom that individual human beings act, that is, on the primordial fact that individuals engage in conscious actions toward chosen goals. This concept of action contrasts to purely reflexive, or knee-jerk, behavior, which is not directed toward goals. The term “Praxeology” (the logic of action) is used for the branch of knowledge that includes economics. The matter of economics is human plans and the actions resulting from those plans. The main concept of economics is the planned actions of real human beings, and it advances by analyzing the thinking used in making those plans. Mises often uses it in this manner: “Economics is the theory of all human action, the general science of the immutable categories of action and of their operation under all thinkable special conditions under which man acts”. Human action is purposeful behavior. Action is will put into operation and transformed into an agency, is aiming at ends and goals, is the ego’s meaningful response to stimuli and to the conditions of its environment, is a person’s conscious adjustment to the state of the universe that determines his

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