Functions of economic theory

The Main functions of the economic theory were formed in the infancy of this science. There are only five.

1. Informative. The implementation of this function of economic theory is through the study of the essence of processes and phenomena in this field. When science discovers and formulates new categories and laws, thus it adds to the person's knowledge, increases the intellectual capacity of the whole society. She also contributes to expansion of Outlook of people, scientific forecasting of economic development of society.

2. Methodological. The meaning of this function of economic theory is that it reveals the basic concepts, categories, laws and principles of management. And they all have practical application in many fields of human activity. That is, on the economic theory relies on a number of other Sciences in this field.

3. Practical. The essence of this function of economic theory is reduced to the justification of state policy in this area from the point of view of science. Also, in practice, recommendations concerning the use of methods and principles of correct management.

Economic policy looks like a whole system of measures undertaken by the state. They are all aimed at the development of the economy of the nation and affected all social classes. Within its competence to define the best possible solutions emerged in this context.

Economic theory and practice are in close relationship with each other. Without a bilateral context, they lose all meaning. So, ordering on theoretical research generates just practice. It provides material for scientific analysis and gives the final assessment of the viability of any theory. The practice is a true criterion of the authenticity of knowledge in the economy. It motivates to study. It also leads to the prediction, the next step from which – rational action, involving continuous improvement practices. This cyclical nature is repeated endlessly, each time rising to a higher level.

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4. Predictive. It manifests itself in the development of scientific background for predicting the development prospects of the country in the future in terms of the economy and society. In practice, it is the development of forecasts of performance and long-term programs for the development of social production. Moreover, taken into account and future resources and costs, and options of the final results.

5. Educational. The meaning of this function of economic theory is the formation of the citizens of analytical skills, modern thinking, logic and culture. All this will help them in the new market system to generate economic, competent behavior. The result of effective influence of this function is the formation of a coherent picture about the economic system at the level of the nation and the world. In addition, it fosters understanding that only deep knowledge, creativity and entrepreneurial spirit, steady work, good decisions and the ability to take responsibility for their own actions in the conditions of tough competition will help to achieve a high level of life and success in profession.

Currently, the country continues the transition to a market economy. Therefore, in modern conditions plays an important role the subject and functions of economic theory. Because deep knowledge is simply necessary to change the conditions of life for the better. This cannot be done without mastering economic laws and mechanisms of their use in economic activities, without the ability to recognize the nature of the interdependencies and linkages in this area.