Economics
What is economics?Economics Presented by Anmol Kumar Sharma
There is no generally accepted definition of economics.
Jacob Viner says Economists is that economists do
Maurice Dobb calls the effort of defining economics scholastic
dogmatism which is not arid but achieves nothing.
There is no unanimity so far as definition of economics is
concerned. It is said that where there are six economist there will
be seven definitions.
Gunnar Myrdal goes to the extent saying, any effort of defining
economics is unnecessary and undesirable.
But we will try to understand it by looking into various
definition given by various economists.
Adam smithSmith in his book An enquiry into the nature and
causes of wealth of Nation published in 1776 as study of nature and
causes of the wealth of nations. It considers wealth as the main
point of emphasis in economics.
Criticism
This definition has reduced it to science of bread and butter
which teaches selfishness and lust for money. It has been called
Dark and dismal science. It meant that man is guided by the urge of
earning wealth only.
Science of welfareAlfred Marshall in his book principles of
economics defined it as a study of mankind in its ordinary business
of Life. It examines that part of individual and social action
which is most closely connected with attainment and with use of
material requisites of well being. In short welfare was considered
as main point of study of economics
Criticism Welfare cannot be quantified. This is limited in scope
and narrow definition of economics.
Welfare Definition
Scarcity Definition Science of choiceRobbins defines economics
as the science which studies human behavior as a relationship
between ends and scarce means which have alternative uses.
Criticism
Major criticism is that scarcity is not always reason of
economic problem abundance also becomes problem as it was during g
the depression of thirties.
By taking into consideration the term wealth from Adam smith ,
material welfare from Marshall, scarcity from Robbins and economic
growth by Samuelson we can derive a satisfactory definition of
economics :
Economics is a science that studies for the purpose of achieving
maximum satisfaction of wants and increasing welfare and economic
growth and studies those activities which are concerned with the
efficient consumption, production, exchange and distribution of
scarce means having alternative uses.
In simple terms we can say it is a social science with basic
function to study how people and nations maximize their gains from
limited means and opportunities i.e. optimum allocation of given
resources
Subject matter of economicsThe basics subject matter of
economics is
The economyThe coordination processThe effects of scarcityThe
science of choiceHuman behavior Human beings as to how they
coordinate wants and desires, given the decision making mechanisms,
social customs and political realties of society
Thank You
