The cradle of the modern economy is the United Kingdom. The Scotsman John Law described his “Water Diamanten’ theory in 1705 the system of supply and demand in the market. The father of economics Adam Smith, His book An Inquiry Into the Nature and Causes of the Wealth of Nations (an investigation into the nature and cause of wealth) from 1776 is the start for the economy as a science. Others have his work further.
The big moment in the history of economics is the first industrial revolution. This revolution took place in the years 1780-1850. The production of goods and services are designed differently and takes impressive increase.
There are various ways to the state budget and the production organization. The main types are:
1. centrally planned economy or plan has been implemented by communism.
2. free market economy or capitalism in its pure form occurred in the early stages of the industrial revolution.
3. mixed economy that more or less practiced in almost every country in the world. One community will be more the character of a centrally planned economy, while another society more in the nature of a free market economy. There are several possible forms of organization. Most Western societies have a form of mixed economy with emphasis on the free market model.
The organization focuses on teaching strengths and weaknesses of different economic systems.