Economics is the social science that studies the production and consumption of goods and services. Economics focuses on the behaviour and interactions of economic agents. Microeconomics analyzes basic elements in the economy, including individual agents and markets, their interactions, the outcomes of interactions. Individual agents may include, for example, firms and sellers. Macroeconomics analyzes the entire economy and issues affecting it, including unemployment of resources, economic growth, the public policies that address these issues. See glossary of economics. Other broad distinctions within economics include those between positive economics, describing "what is", normative economics, advocating "what ought to be". Economic analysis can be applied throughout society, in business, health care, government. Economic analysis is sometimes applied to such diverse subjects as crime, the family, politics, social institutions, war and the environment; the discipline was renamed in the late 19th century due to Alfred Marshall, from "political economy" to "economics" as a shorter term for "economic science".
At that time, it became more open to rigorous thinking and made increased use of mathematics, which helped support efforts to have it accepted as a science and as a separate discipline outside of political science and other social sciences. There are a variety of modern definitions of economics. Scottish philosopher Adam Smith defined what was called political economy as "an inquiry into the nature and causes of the wealth of nations", in particular as: a branch of the science of a statesman or legislator a plentiful revenue or subsistence for the people... to supply the state or commonwealth with a revenue for the publick services. Jean-Baptiste Say, distinguishing the subject from its public-policy uses, defines it as the science of production and consumption of wealth. On the satirical side, Thomas Carlyle coined "the dismal science" as an epithet for classical economics, in this context linked to the pessimistic analysis of Malthus. John Stuart Mill defines the subject in a social context as: The science which traces the laws of such of the phenomena of society as arise from the combined operations of mankind for the production of wealth, in so far as those phenomena are not modified by the pursuit of any other object.
Alfred Marshall provides a still cited definition in his textbook Principles of Economics that extends analysis beyond wealth and from the societal to the microeconomic level: Economics is a study of man in the ordinary business of life. It enquires how he uses it. Thus, it is on the one side, the study of wealth and on the other and more important side, a part of the study of man. Lionel Robbins developed implications of what has been termed "erhaps the most accepted current definition of the subject": Economics is a science which studies human behaviour as a relationship between ends and scarce means which have alternative uses. Robbins describes the definition as not classificatory in "pick out certain kinds of behaviour" but rather analytical in "focus attention on a particular aspect of behaviour, the form imposed by the influence of scarcity." He affirmed that previous economists have centred their studies on the analysis of wealth: how wealth is created and consumed. But he said that economics can be used to study other things, such as war, that are outside its usual focus.
This is because war has as the goal winning it, generates both cost and benefits. If the war is not winnable or if the expected costs outweigh the benefits, the deciding actors may never go to war but rather explore other alternatives. We cannot define economics as the science that studies wealth, crime and any other field economic analysis can be applied to; some subsequent comments criticized the definition as overly broad in failing to limit its subject matter to analysis of markets. From the 1960s, such comments abated as the economic theory of maximizing behaviour and rational-choice modelling expanded the domain of the subject to areas treated in other fields. There are other criticisms as well, such as in scarcity not accounting for the macroeconomics of high unemployment. Gary Becker, a contributor to the expansion of economics into new areas, describes the approach he favours as "combin assumptions of maximizing behaviour, stable preferences, market equilibrium, used relentlessly and unflinchingly."
One commentary characterizes the remark as making economics an approach rather than a subject matter but with great specificity as to the "choice process and the type of social interaction that analysis involves." The same source reviews a range of definitions included in principles of economics textbooks and concludes that the lack of agreement need not affect the subject-matter that the texts treat. A
Index of Economic Freedom
The Index of Economic Freedom is an annual index and ranking created in 1995 by The Heritage Foundation and The Wall Street Journal to measure the degree of economic freedom in the world's nations. The creators of the index took an approach similar to Adam Smith's in The Wealth of Nations, that "basic institutions that protect the liberty of individuals to pursue their own economic interests result in greater prosperity for the larger society". Key: ██ Free ██ Mostly Free ██ Moderately Free ██ Mostly Unfree ██ Repressed Andorra Antigua and Barbuda Grenada Iraq Libya Liechtenstein Marshall Islands Monaco Nauru Palau Saint Kitts and Nevis San Marino Somalia South Sudan Syria Tuvalu The following table contains more attributes; the whole table is available in XLS format at The Heritage Foundation web site. The 2018 ranking scores aspects of economic freedom between 0 and 100, with 0 meaning "no economic freedom" and 100 meaning "total economic freedom". There are twelve aspects divided into four categories.
Property rightsDegree of a country's legal protection of private property rights and degree of enforcement of those laws. It is divided into the following sub-factors: physical property rights intellectual property rights strength of investor protection risk of expropriation quality of land administrationJudicial effectivenessDegree of the judiciary's efficiency and fairness dealing with property laws, it is divided into the following sub-factors: judicial independence quality of the judicial process likelihood of obtaining favorable judicial decisionsGovernment integrityAnalyzes how prevalent are forms of political corruption and practices such as bribery, nepotism, patronage and graft. It is divided into the following sub-factors: public trust in politicians irregular payments and bribes transparency of government policymaking absence of corruption perceptions of corruption governmental and civil service transparency Tax burdenAnalyzes marginal tax rates on personal and corporate income and the overall taxation level as a percentage of the GDP.
Its sub-factors are: top marginal tax rate on individual income top marginal tax rate on corporate income total tax burden as a percentage of GDPGovernment spendingQuantifies the burden of government expenditures, including consumption by the state and all transfer payments related to various entitlement programs. The ideal level varies from country to country. Fiscal healthAnalyzes how well a country manages its budget by quantifying the growing debt and deficit, it is divided into the following sub-factors: average deficits as a percentage of GDP for the most recent three years debt as a percentage of GDP Business freedomAnalyses the cost and freedom to open and close a business, taking into consideration factors like electricity. It is divided into thirteen sub-factors: starting a business—procedures. Labor freedomQuantifies the intrusivness of labor rights such as minimum wage, laws inhibiting layoffs, severance requirements, measurable regulatory restraints on hiring and hours worked, plus the labor force participation rate as an indicative measure of employment opportunities in the labor market.
It is divided into the following sub-factors: ratio of minimum wage to the average value added per worker hindrance to hiring additional workers rigidity of hours difficulty of firing redundant employees mandated notice period mandatory severance pay labor force participation rateMonetary freedomAnalyses how stable are prices and how much microeconomy intervenes. It is divided into the following sub-factors: weighted average inflation rate for the most recent three years price controls Trade freedomQuantifies the extent to which tariff and nontariff barriers affect imports and exports of goods and services into and out of the country, its sub-factors are: trade-weighted average tariff rate nontariff barriers Investment freedomAnalyses how free or constrained is the flow of investment capital of individuals and firms. Financial freedomIndicates banking efficiency as well as how independent from the government is the financial sector; this aspect looks at five broad areas: extent of government regulation of financial services degree of state intervention in banks and other financial firms through direct and indirect ownership government influence on the allocation of credit extent of financial and capital market development openness to foreign competition The Heritage Foundation reports that the top 20% on the index have twice the per capita income of those in the second quintile, five times that of the bottom 20%.
Carl Schramm, who wrote the first chapter of the 2008 Index, states that cities of Medieval Italy and mid-19th century Midwestern American cities all flourished to the degree they possessed economic fluidity and institutional adaptiveness created by economic freedom. According to Will Wilkinson of the libertarian think tank Cato Institute, studies show that higher economic freedom correlates with higher self-reported happiness. According to economists Tomi Ovaska and Ryo Takashima, economic freedom
Unpaid labor is defined as labor that does not receive any direct remuneration. This is a form of'non-market work' which can fall into one of two categories: unpaid work, placed within the production boundary of the System of National Accounts, such as gross domestic product, unpaid work that falls outside of the production boundary, such as domestic labor that occurs inside households for their consumption. Unpaid labor isn't limited to activities within a household. Other types of unpaid labor activities include volunteering as a form of charity work and interning as a form of unpaid employment. According to time-use surveys collected by the United Nations Statistics Division, women are the main undertakers of unpaid labor globally; this uneven division of unpaid labor within households has implications for women's involvement in both public and private spheres. One common form of unpaid work is unpaid domestic work; the burden of this type of unpaid work falls on the women in a household. Contributing so much time to unpaid domestic work has major effects on women and their participation in the labor market, which affects children and the state.
"Unpaid care work" specifically contains everyday activities, such as cooking, cleaning, shopping for own household, as well as care of children, the elderly, the sick, the disabled. The term "unpaid care work" is defined as care work for family members, but it is important to note that other types of unpaid SNA work exist that address'productive activities', which include types of labor such as "growing food for own consumption, collecting water and fuel". While unpaid care work is not biological, reproductive labor is. Debra Satz believes that reproductive labor is "a special kind of labor that should not be treated according to market norms". Childbearing is an act that only those who possess female reproductive organs can perform, making it irreversibly a biological-female's job. Married women, single mothers, or other female family members are expected to be the primary actors of this unpaid reproductive labor in their personal lives, on top of the economic necessity of entering the productive, paid labor force.
Child-rearing falls under both reproductive and care labor, so, after breastfeeding, any member of the household can take on the job. The role of women and men within their households is rooted in gender norms and cultural values that have been reinforced over time by colonization and imperialism. For example, as seen in Patricia Grimshaw's research in Hawaii: New England missionaries assumed the roles of imperialists and colonialists by preaching their Christian values to the native Hawaiian population, before the missionary women arrived, practiced polygamy and did not trouble themselves with domestic tasks like ironing; the Christian women, in particular, saw it as their responsibility to teach the native women notions of femininity that consisted of remaining inside the home to care for the family and to remain submissive to their husbands. A woman's position in the home was seen as a prerequisite to being a "good" wife and mother. Since the 1960s, the spread of globalization has given rise to new opportunities for women to participate in market work that has challenged the assumption their primary adult role as that of caretaker for the family and home.
The spread of globalization has created more opportunities for women to enter paid employment, but has not relieved them of their time spent on unpaid labor. While participating in the labor market, women who secure paid employment undertake what is known as the "double burden" of labor. Finding the optimal balance of balance of paid and unpaid labor, or work life balance, is a constant struggle for women trying to create careers for themselves while raising children or caring for elderly family members. Women have to decide where to allocate time and financial resources, which impacts their ability to develop their own capabilities. In turn, this decision impacts their family's relative standard of living as measured by national income accounting statistics; because of social norms and expectations, the burden of unpaid work falls on the female member of the household. If the male member of the household are available to perform the care labor after they return home from their paid job, it is more seen that the women are taking on the bulk of the care labor after they return home.
The traditional view of a family involves a woman in unpaid domestic labor supporting the household. Arguments have been made that the value of unpaid domestic labor must always be considered to prevent the exploitation of unpaid workers, thus should be seen as legitimate employment. There are arguments that a "caregiver allowance" should be provided to unpaid domestic workers to protect the labor value of their work. Regardless of the methodology used, a variety of studies have shown that the division of household labor results in a disproportionate burden falling on the wives in married couples' households. While this is the case, it has been shown that the disparity between men and women in married households has been shrinking to some degree. For example, during the Great Recession of the 2000s, low income men increased their contributions to their households by completing more hours of unpaid domestic work. Globally, the expectation
Median income is the amount that divides the income distribution into two equal groups, half having income above that amount, half having income below that amount. Mean income is the amount obtained by dividing the total aggregate income of a group by the number of units in that group. Mode income is the most occurring income in a given income distribution. Median income can be calculated by household income, by personal income, or for specific demographic groups. See the country lists in the household income article. In 2013, Gallup published a list of countries with median annual household income, based on a self-reported survey of 2000 adults from each country. Using median, rather than mean income, results in a much more accurate picture of the typical income of the middle class since the data will not be skewed by gains and abnormalities in the extreme ends; the figures are in international dollars using purchasing power parity and are based on responses from 2006 to 2012 inflation adjusted to 2010 levels.
Below is a list of the top 30 countries. The figures do not take social contributions into account. Please note that the list below does not correspond to citizens of each country, but to all its residents. States rich in fossil fuels such as Qatar and Kuwait have a large gap in terms of median annual earnings of citizens and non-citizens; the annual median equivalence disposable household income for selected OECD countries is shown in the table below. This is the disposable income of an equivalent adult in a household in the middle of the income distribution in a year. Data are in United States dollars at current prices and current purchasing power parity for private consumption for the reference year. An academic study on the Census income data claims that when correcting for underreporting, U. S. gross median household income was 15% higher in 2010. Since 1980, U. S. gross domestic product per capita has increased 67%, while median household income has only increased by 15%. Median household income is a politically sensitive indicator.
Voters can be critical of their government if they perceive that their cost of living is rising faster than their income. The early-2000s recession began with the bursting of the dot-com bubble and affected most advanced economies including the European Union and the United States. An economic recession will cause household incomes to decrease by as much as 10%; the late-2000s recession began with the bursting of the U. S. housing bubble, which caused a problem in the dangerously exposed sub prime-mortgage market. This in turn triggered a global financial crisis. In constant price, 2011 American median household income was 1.13% lower than what it was in 1989. This corresponds to a 0.05% annual decrease over a 22-year period. In the meantime, GDP per capita has increased by 33.8% or 1.33% annually. A study on US Census income data claims that when using the national accounting methodology, U. S. gross median household income was $57,739 in 2010. In 2015, the US median household income spiked 5.2 per cent, reaching $56,000, making it the first annual hike in median household income since the start of the Great Recession.
List of countries by average wage List of U. S. states by income Mean household income Income distribution Income quintiles Household income in the United States International Ranking of Household Income Median Median household income in Australia and New Zealand Median income per household member Places in the United States with notable demographic characteristics Poverty in the United States
An income tax is a tax imposed on individuals or entities that varies with respective income or profits. Income tax is computed as the product of a tax rate times taxable income. Taxation rates may vary by type or characteristics of the taxpayer; the tax rate may increase as taxable income increases. The tax imposed on companies is known as corporate tax and is levied at a flat rate. However, individuals are taxed at various rates according to the band. Further, the partnership firms are taxed at flat rate. Most jurisdictions exempt locally organized charitable organizations from tax. Capital gains may be taxed at different rates than other income. Credits of various sorts may be allowed that reduce tax; some jurisdictions impose the higher of an income tax or a tax on an alternative base or measure of income. Taxable income of taxpayers resident in the jurisdiction is total income less income producing expenses and other deductions. Only net gain from sale of property, including goods held for sale, is included in income.
Income of a corporation's shareholders includes distributions of profits from the corporation. Deductions include all income producing or business expenses including an allowance for recovery of costs of business assets. Many jurisdictions allow notional deductions for individuals, may allow deduction of some personal expenses. Most jurisdictions either do not tax income earned outside the jurisdiction or allow a credit for taxes paid to other jurisdictions on such income. Nonresidents are taxed only on certain types of income from sources within the jurisdictions, with few exceptions. Most jurisdictions require self-assessment of the tax and require payers of some types of income to withhold tax from those payments. Advance payments of tax by taxpayers may be required. Taxpayers not timely paying tax owed are subject to significant penalties, which may include jail for individuals or revocation of an entity's legal existence; the concept of taxing income is a modern innovation and presupposes several things: a money economy, reasonably accurate accounts, a common understanding of receipts and profits, an orderly society with reliable records.
For most of the history of civilization, these preconditions did not exist, taxes were based on other factors. Taxes on wealth, social position, ownership of the means of production were all common. Practices such as tithing, or an offering of first fruits, existed from ancient times, can be regarded as a precursor of the income tax, but they lacked precision and were not based on a concept of net increase; the first income tax is attributed to Egypt. In the early days of the Roman Republic, public taxes consisted of modest assessments on owned wealth and property; the tax rate under normal circumstances was 1% and sometimes would climb as high as 3% in situations such as war. These modest taxes were levied against land and other real estate, animals, personal items and monetary wealth; the more a person had in property, the more tax they paid. Taxes were collected from individuals. In the year 10 AD, Emperor Wang Mang of the Xin Dynasty instituted an unprecedented income tax, at the rate of 10 percent of profits, for professionals and skilled labor.
He was overthrown 13 years in 23 AD and earlier policies were restored during the reestablished Han Dynasty which followed. One of the first recorded taxes on income was the Saladin tithe introduced by Henry II in 1188 to raise money for the Third Crusade; the tithe demanded that each layperson in England and Wales be taxed one tenth of their personal income and moveable property. The inception date of the modern income tax is accepted as 1799, at the suggestion of Henry Beeke, the future Dean of Bristol; this income tax was introduced into Great Britain by Prime Minister William Pitt the Younger in his budget of December 1798, to pay for weapons and equipment for the French Revolutionary War. Pitt's new graduated income tax began at a levy of 2 old pence in the pound on incomes over £60, increased up to a maximum of 2 shillings in the pound on incomes of over £200. Pitt hoped that the new income tax would raise £10 million a year, but actual receipts for 1799 totalled only a little over £6 million.
Pitt's income tax was levied from 1799 to 1802, when it was abolished by Henry Addington during the Peace of Amiens. Addington had taken over as prime minister in 1801, after Pitt's resignation over Catholic Emancipation; the income tax was reintroduced by Addington in 1803 when hostilities with France recommenced, but it was again abolished in 1816, one year after the Battle of Waterloo. Opponents of the tax, who thought it should only be used to finance wars, wanted all records of the tax destroyed along with its repeal. Records were publicly burned by the Chancellor of the Exchequer, but copies were retained in the basement of the tax court. In the United Kingdom of Great Britain and Ireland, income tax was reintroduced by Sir Robert Peel by the Income Tax Act 1842. Peel, as a Conservative, had opposed income tax in the 1841 general election, but a growing budget deficit required a new source of funds; the new income tax, based on Addington's model, was imposed on incomes above £150. Although this measure was intended to be temporary, it soon became a fixture of the British taxation system.
A committee was formed in 1851 under Joseph Hume to investigate the matter, but failed to reach a clear recommendation. Despite the vociferous objection, William Gladstone, Chancellor of the Exchequer from 1852, kept the prog
Integrated Authority File
The Integrated Authority File or GND is an international authority file for the organisation of personal names, subject headings and corporate bodies from catalogues. It is used for documentation in libraries and also by archives and museums; the GND is managed by the German National Library in cooperation with various regional library networks in German-speaking Europe and other partners. The GND falls under the Creative Commons Zero licence; the GND specification provides a hierarchy of high-level entities and sub-classes, useful in library classification, an approach to unambiguous identification of single elements. It comprises an ontology intended for knowledge representation in the semantic web, available in the RDF format; the Integrated Authority File became operational in April 2012 and integrates the content of the following authority files, which have since been discontinued: Name Authority File Corporate Bodies Authority File Subject Headings Authority File Uniform Title File of the Deutsches Musikarchiv At the time of its introduction on 5 April 2012, the GND held 9,493,860 files, including 2,650,000 personalised names.
There are seven main types of GND entities: LIBRIS Virtual International Authority File Information pages about the GND from the German National Library Search via OGND Bereitstellung des ersten GND-Grundbestandes DNB, 19 April 2012 From Authority Control to Linked Authority Data Presentation given by Reinhold Heuvelmann to the ALA MARC Formats Interest Group, June 2012
Education is the process of facilitating learning, or the acquisition of knowledge, values and habits. Educational methods include storytelling, teaching and directed research. Education takes place under the guidance of educators and learners may educate themselves. Education can take place in formal or informal settings and any experience that has a formative effect on the way one thinks, feels, or acts may be considered educational; the methodology of teaching is called pedagogy. Formal education is divided formally into such stages as preschool or kindergarten, primary school, secondary school and college, university, or apprenticeship. A right to education has been recognized by the United Nations. In most regions, education is compulsory up to a certain age. Etymologically, the word "education" is derived from the Latin word ēducātiō from ēducō, related to the homonym ēdūcō from ē- and dūcō. Education began in prehistory, as adults trained the young in the knowledge and skills deemed necessary in their society.
In pre-literate societies, this was achieved orally and through imitation. Story-telling passed knowledge and skills from one generation to the next; as cultures began to extend their knowledge beyond skills that could be learned through imitation, formal education developed. Schools existed in Egypt at the time of the Middle Kingdom. Plato founded the Academy in the first institution of higher learning in Europe; the city of Alexandria in Egypt, established in 330 BCE, became the successor to Athens as the intellectual cradle of Ancient Greece. There, the great Library of Alexandria was built in the 3rd century BCE. European civilizations suffered a collapse of literacy and organization following the fall of Rome in CE 476. In China, Confucius, of the State of Lu, was the country's most influential ancient philosopher, whose educational outlook continues to influence the societies of China and neighbours like Korea and Vietnam. Confucius gathered disciples and searched in vain for a ruler who would adopt his ideals for good governance, but his Analects were written down by followers and have continued to influence education in East Asia into the modern era.
The Aztecs had a well-developed theory about education, which has an equivalent word in Nahuatl called tlacahuapahualiztli. It means "the art of raising or educating a person" or "the art of strengthening or bringing up men." This was a broad conceptualization of education, which prescribed that it begins at home, supported by formal schooling, reinforced by community living. Historians cite that formal education was mandatory for everyone regardless of social class and gender. There was the word neixtlamachiliztli, "the act of giving wisdom to the face." These concepts underscore a complex set of educational practices, oriented towards communicating to the next generation the experience and intellectual heritage of the past for the purpose of individual development and his integration into the community. After the Fall of Rome, the Catholic Church became the sole preserver of literate scholarship in Western Europe; the church established cathedral schools in the Early Middle Ages as centres of advanced education.
Some of these establishments evolved into medieval universities and forebears of many of Europe's modern universities. During the High Middle Ages, Chartres Cathedral operated the famous and influential Chartres Cathedral School; the medieval universities of Western Christendom were well-integrated across all of Western Europe, encouraged freedom of inquiry, produced a great variety of fine scholars and natural philosophers, including Thomas Aquinas of the University of Naples, Robert Grosseteste of the University of Oxford, an early expositor of a systematic method of scientific experimentation, Saint Albert the Great, a pioneer of biological field research. Founded in 1088, the University of Bologne is considered the first, the oldest continually operating university. Elsewhere during the Middle Ages, Islamic science and mathematics flourished under the Islamic caliphate, established across the Middle East, extending from the Iberian Peninsula in the west to the Indus in the east and to the Almoravid Dynasty and Mali Empire in the south.
The Renaissance in Europe ushered in a new age of scientific and intellectual inquiry and appreciation of ancient Greek and Roman civilizations. Around 1450, Johannes Gutenberg developed a printing press, which allowed works of literature to spread more quickly; the European Age of Empires saw European ideas of education in philosophy, religion and sciences spread out across the globe. Missionaries and scholars brought back new ideas from other civilizations – as with the Jesuit China missions who played a significant role in the transmission of knowledge and culture between China and Europe, translating works from Europe like Euclid's Elements for Chinese scholars and the thoughts of Confucius for European audiences; the Enlightenment saw the emergence of a more secular educational outlook in Europe. In most countries today, full-time education, whether at school or otherwise, is compulsory for all children up to a certain age. Due to this the proliferation of compulsory education, combined with population growth, UNESCO has calculated that in the next 30 years more people will receive formal education than in all of human history thus far.
Formal education occurs in a structured environment. Formal education takes place in a school environme