and Explanation of Economics:
Economics is growing very rapidly as
the years pass. As new ideas are being discovered and the old
theories are being revised, therefore, it is not possible to
give a definition of economics which has a general acceptance.
For the sake of convenience, the set
of definitions given by various economists are generally
classified under four heads:
Economics as a science of wealth.
Economics as a science of
Economics as a science of
scarcity and choice.
Economics as a science of growth and
Economics as a
Science of Wealth or Definition of
Economics By Adam Smith:
There is no one definition of
Economics which has a general acceptance. The
formal roots of the scientific framework of economics can be
traced back to classical economists.
Economics as a Science of Material Welfare
or Definition of Economics By
The neo-classical school led by Dr.
Alfred Marshall gave economics a respectable place among
social sciences. He was the first economist who lifted economics
from the bad repute it had fallen.
Economics as a Science of Scarcity and
Choice or Definition of Economics By Robbins:
Marshall’s definition of economics remained an
article of faith with all economists from 1830 to 1932. However, with the
publication of Robbins book 'Nature and Significance of
Economic Science' 1932, there developed a fresh controversy in regard to the
definition of economics.
Economics as a Science of Growth and Efficiency
or Definition of Economics By Modern Economists:
After considering the various definitions of
Economics, we can easily conclude that none of them is satisfactory. If we
exclude man and his welfare from the study of Economics, there will be no use of
Economics Neutral Between Ends:
economics the term ‘ends’ means the goals which a man wishes to achieve
in the economic aspects of his life. The ‘means’ are the sources which
are used to achieve the ends.
problem of mankind owes its origin to the fact that human wants are numerous and
of different kinds. The resources to satisfy the multifarious human wants are
limited or scarce. Continue
The scope of economics is the area or boundary of
the study of economics. In scope of economics we answer and analyze the
following three main questions. Continue reading.
Nature of Economic Laws:
Economics, like all other sciences, has drawn its
own set of generalizations or laws. Economic laws are nothing more than careful
conclusions and inferences drawn with the help of reasoning or by the aid of
observation of human and physical nature.
of Economic Analysis:
An economic theory derives laws
or generalizations through two methods:
(1) Deductive Method and (2) Inductive Method.
Economic Analysis and
Economics, like other social sciences, has two
aspects. One aspect is analytical and the other is practical. Both these aspects
are of great importance because economic analysis is the basis for economic
policy. Continue reading.
Micro and Macro
In recent years, the subject matter of economics is
divided into two broad areas. One of them is called Microeconomics and the other
is called Macroeconomics.
Importance of the Study of Economics:
The importance and utility of the subject of
Economics can be judged from this fact that it is now considered to be one of
the most important and useful subject as compared to any other branch of
knowledge. Continue reading.