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NATURE & SCOPE OF ECONOMICS. 1. WHAT ABOUT ECONOMICS. Economics is derived from a Greek word OIKO (house) & Nomos (to manage) . Main concern in economics is resources are limited to satisfy unlimited human wants. WHAT ABOUT ECONOMICS. - PowerPoint PPT Presentation
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Economics is derived from a Greek word OIKO (house) & Nomos (to manage) .
Main concern in economics is resources are limited to satisfy unlimited human wants.
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WHAT ABOUT ECONOMICS
These basic necessities of life makes humans to
earn for living.
Economics is science of economics activities ,it
studies how man manages to satisfy his
unlimited economic wants with the help of
available limited resources.
Economics is a progressive social science.
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DEFINITIONS OF ECONOMICS
Economics is a science of wealth (Adam Smith).
Economics is a science of material welfare
(Marshall).
Economics is science of scarcity &
choice(Robbins).5
ECONOMICS IS A SCIENCE OF WEALTH
Adam smith the forefather of classical
economists wrote a book in 1776 “An
enquiry into the nature & causes of the
wealth of nations”
According to him : Economics is a
science which studies the process of
production, consumption, distribution
& exchange of wealth.6
ECONOMICS IS A SCIENCE OF WEALTH
The focal point of his definition is :
“Economics is a science of wealth
of country & its growth”
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CRITICAL EVALUATION
In 19th century the Economists like
Ruskin, Carlyle & Mathew Arnold criticize
his definition economics as “Bread &
Butter science”;””Teach selfish & love of
money”;”Dark & dismal science”.
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CONCULUSION:
All that happened because that term
economics was interpreted in a very narrow
sense( to mean riches & abundance of
money) in broader term we can that wealth
is mean to satisfy human wants.
In his definition he gave primary importance
to wealth & secondary to men. but wealth is
for men ,not men is for wealth.
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ECONOMICS IS SCIENCE OF METRIAL WELFARE (MARSHALL) According to Marshall:
“ Economics is the study of mankind in
the ordinary business of life. it
examines that part of individual &
social action which is most closely
concerned with the attainment & use of
material requisites of well-being”
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ECONOMICS IS SCIENCE OF METRIAL WELFARE (MARSHALL) Main Features :1. It’s a study of ordinary person living in a society .It’s not
study of isolated individual
2. It studies only the economic aspect of human being & doesn't
have any concern with any other aspect like religion, social
& political. Strictly speaking ,its relates to how the man
earns his income & how he spend it.
3. It studies only material requisites of well-being or cause
of material welfare .
4. It does not regard wealth as the be all & the all of economic
activities .wealth is sought only for promoting human welfare
.
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CRITICAL EVALUATION:
Narrow down the scope of economics:i. Exclude non-material things.
ii. E.g. of lawyer, doctor engineer, singer & consultant.
Relation sought between economic &
welfare is wrong approach:i. Some activities are economic activities but are not
welfare activities.
ii. E.g. manufacturing & sale of
intoxicants,such,as,cigars & alcoholic goods .
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CRITICAL EVALUATION:
Welfare is vague concept & can not be quantitatively measured:
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ECONOMICS IS SCIENCE OF SCARCITY & CHOICES(ROBBINS) According to the book “Nature & Significance
Of Economic Science” publish in 1932 .
“Economics is science which studies human
behavior as a relationship between ends &
scare means which have alternative uses”
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ECONOMICS IS SCIENCE OF SCARCITY & CHOICES(ROBBINS)
Basic features of his
definition:
i. Human wants are unlimited.
ii.Means are limited.
iii.Wants are not equally distributed.
iv.Means have alternative uses. 15
SCOPE OF EOCONOMICS
Subject matter of economics.
Economics is a science or as an art.
Economics as a positive or normative
science.
Economics as social science.
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SUBJECT MATTER OF ECONOMICS: The subject matter of economics is also not free from controversy.
How ever today economists consider the subject matter of economics as:
“All those human being economic activities made for making choices among scare resources to
allocate them for present & future aiming all
maximizing the gain possible are the subject
matter of economics”
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ECONOMICS AS SCIENCE
It is science in the sense, it is a
systematic knowledge derived from
scientific study, observation &
experiments based on scientific
methods.
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ECONOMICS AS AN ART
Economics is an art too because an art
is a system of rules for the attainment
of given end. There are several
branches of economics which provide
practical guidance in the solution of
economic problem.
Its is a science in its methodology and
an art in its application.
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Positive & Normative Economics
Positive economics tells us that what are
the facts.
For E.g I give charity (involve facts)
Normative economics tells us that
what should do.
For E.g I should give charity(involve
judgment)
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Micro Or Macro Economics
Micro Economics:
The study of economic behavior of individual human beings & firms.
Macro Economics:
The study of whole economy.
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