Philosophy guides your actions during the course of a normal day. Philosophy, therefore, becomes an important part of thinking about free markets and economics.

Although people frequently do not acknowledge them, philosophical principles govern their actions during life. Many western philosophers use the following categories:



a division of philosophy that is concerned with the fundamental nature of reality and being and that includes ontology, cosmology, and often epistemology.


the study or a theory of the nature and grounds of knowledge especially with reference to its limits and validity.


A branch of philosophy that addresses questions concepts such as good and evil, right and wrong, justice, virtue, etc.


a branch of philosophy dealing with the nature of beauty, art, and taste, and the creation and appreciation of beauty.


Logic plays a critical role in the study of economics—a theoretical science. Reaching valid and true conclusions in economics requires rigorous application of logic.

Political Philosophy

Political Philosophy influences markets because difference political structures impinge on markets to differing degrees.

Social Philosophy

Social behavior falls within the scope of the study of Social Philosophy. People generally place economics under the category of Social Philosophy.