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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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