Discussion of Economic History

Fact: the events that can be seen in the eyes of his own.
Concept: data that has the same characteristics.

Three different things:

1. Hipotesis: based on the variable / new test
2. Theory: tested or not
3. Dalil Law: the hypothesis that true / tested

Economic Characteristics:

1. Object: issues to resolve
2. Method: attempt to justify science. A set of facts (inductive) and departs from the theory (deductive)
3. Systematics: relevance of economics as other disciplines

Problem of economics: human problems in meeting needs related to fulfilling the needs of Human Resources.

Innovation is the discovery of new values
example.

• Hargreaves: finder of the spinning yarn
• Arkwright: finder loom
• James Watt: finder of the steam engine

The industrial revolution was founded in 1770.
The impact of the existence of such ondustri revolution:

1. Negative Impact: Unemployment and Encourages social unrest
2. Positive Impact: Price bargains because there is mass production and Request to increase

Phenomenal Conventional:

1. High income per capita, but not uniformly so that the gap arises the rich and the poor.
2. consumeristic society
3. Individualistic society
4. Materialistic society, capitalist spirit fostered
5. Unemployment increased
6. Social unrest (due to economic and social problems), so the increase in crime

Conventional Definition is the scientific study of human behavior to meet the needs that are not limited to use of production factors is limited. The main problem in economics is scarcity and choices.

Economic principle is "With a certain sacrifices to get maximum results."

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