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Definition 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 material welfare.

• Economics as a science of scarcity and choice.

• Economics as a science of growth and efficiency.

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. Continue reading.

Economics as a Science of Material Welfare or Definition of Economics By Alfred Marshall:

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. Continue reading.

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. Continue reading.

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 studying it. Continue reading.

Is Economics Neutral Between Ends:

In 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. Continue reading.

Economics Problems:

Economic 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 reading.

Scope of Economics:

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. Continue reading.

Methods of Economic Analysis:

An economic theory derives laws or generalizations through two methods:
(1) Deductive Method and (2) Inductive Method. Continue reading.

Economic Analysis and Economic Policy:

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 Analysis:

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. Continue reading.

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.

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