Economics
as a Science of Growth and Efficiency:
If we define Economics as a science
of administration of scare resources, then its scope becomes too
wide and includes the whole of economics life and not merely
that part of it which is connected with the market price.
Latest/Modern Definition of
Economics:
The modern economist’s define
economics as:
"A science of growth and efficiency".
According to Samuelson:
"Economics is the study of how
people and society end up closing, with or without the use of
money, to employ scarce productive resources that could have
alternative uses, to produce various commodities and distribute
them for consumption now or in the future among various persons
and groups in society".
It analyses the cost and benefits of
improving patterns of resource allocation.
In the words of C.R. McConnell:
“Economics can be defined as a
science of efficiency in the use of resources so as to attain
the greatest or maximum fulfillment of society’s unlimited
wants. Efficiency here implies technical efficiency and economic
efficiency in the use of scarce resources for producing a given
level of output. The term efficiency also relates to the
efficiency of whole economics system. If one section of the
society is made better off without making the other section
worse off, we can say the economic system is operating
efficiently".
After considering the various definitions,
Economics can be defined as:
“A
social science which is concerned with the proper use and
allocation of resources for the achievement and maintenance of
growth with stability and efficiency”.
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