ABSTRACT
The idea of economy as a kind of social housekeeping inspires not only the theory of free trade but all other doctrines of economic policy. Its terminological presentation undergoes more changes than other metaphysical ideas in economics. Adam Smith incorporated the concept of a purposive economy into the system of individualism. Disregarding such side-lines as the German historical school, it has remained in the centre of economic theory ever since. The notion of a market economy as the coordination of activities, directed towards a purpose, a social system of efficient housekeeping, is common to all political doctrines in economics. Economics, then, is allotted a particular field of inquiry and with it a particular method of research. Its subject is thus delineated by the scope of its method. Economics, like other sciences, consists of a number of quite different problems thrown together partly by tradition and partly by considerations of what is convenient for research and teaching.
