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FUNDAMENT ALS OF ECONOMICS

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DEFINITIONS OF ECONOMICS
Definitions of Economics have been broadly divided into four parts: Click to edit Master subtitle style 1) Wealth Definition Adam Smith 2) Welfare Definition Marshall 3) Scarcity Definition Robbins 4) Growth Oriented Definition Samuelson
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ECONOMICS AS SCIENCE OF WEALTHan enquiry Adam Smith, Economics is

into the nature and causes of wealth of Click to edit Master subtitle style nations. Walker, Economics is the body of knowledge which relates to wealth.

J.S. Mill, Economics is the practical science of production and distribution of 6/5/12 wealth.

WELFARE DEFINITION
Marshall, Economics is a study of mankind in the ordinary business of life; it examines the part of individual and social action which is most closely connected with the attainment and with Click to edit Master subtitle style use of material requisites of well being. Penson, Economics is the science of material welfare

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SCARCITY DEFINITION
Robbins, Economics is a science that studies human behavior as a relationship between ends and scarce means whichsubtitle style Click to edit Master have alternative uses. Harvey, Economics is the study of how men allocate their limited resources to provide for their wants.

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GROWTH ORIENTED DEFINITIONS

Samuelson, Economics is the study of how people and society end up choosing with or without the use of money, to employ scarce productive resources that could have alternative Click to edit Master subtitle style uses, it produces various commodities over time and distributes them for consumption, now or in the future, among various persons and groups in society. It analyses costs and benefits of improving patterns of resources allocation.

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WELFARE DEFINITION
Adam Smith, Economics is an enquiry into the nature and causes of wealth of nations. Features: Click to edit is the study of style Economics Master subtitle wealth only. Nature or Meaning of Wealth. Causes of Wealth. Economic man

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Criticisms: More emphasis on wealth. Narrow meaning of wealth Concept of Economic Wealth Neglect of welfare Neglect of the problem of scarcity and Choice. Click to edit means to attainstyle Neglect of Master subtitle wealth Narrow subject matter

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MARSHALLS WELFARE DEFINITION

Marshall, Economics is a study of mankind in the ordinary business of life; it examines the part of individual and social style which is most Click to edit Master subtitle action closely connected with the attainment and with use of material requisites of well being. Features: Importance to the study of Man Study of Social Man Ordinary business of life Study of real man
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Material requisites Welfare Science and Art Classificatory Money is the measure of Material Welfare

Criticisms: Regarding Ordinary business of life Limited Scope Click to edit Master subtitle style Uncertain concept of welfare. Economics is a Human Science Economics is only a Positive Science Impractical 13

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ROBBINS SCARCITY DEFINITION

According to Lord Robbins, Economics is a science that studies human behavior as a relationship between ends and scarce means which have alternative uses. Click to edit Master subtitle style Features: Unlimited Wants or Ends Limited or scarce Means Alternative Uses of Means Wants Differ in Urgency Economic Problem Opportunity Cost
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Criticisms Ignores Social Aspect of Economic Activities Economics is not neutral as regards Ends. Concealed Concept of Welfare Very Wide scope of Economics Not only a Positive Science Division of Personality Click to edit ImpracticalMaster subtitle style Scarcity is not the cause of Economic Problem Study of Static Condition Not fully applicable to Rich Countries Not applicable to under developed Countries Not applicable to Centrally Planned Economics Complex and Abstract Use of Words Means and Ends
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Samuelson, Economics is the study of how people and society end up choosing with or without the use of money, to employ scarce productive resources that could have alternative uses, it produces various commodities over time and distributes them for consumption, now or in Click to edit Master subtitle style and groups in the future, among various persons society. It analyses costs and benefits of improving patterns of resources allocation. Features Economic resources Efficient allocation of resources Full utilization of resources. Increase in resources 6/5/12

GROWTH ORIENTED DEFINITION

Merits Realistic Explanation of economic problem Science and Art Not Neutral as regards Ends Practical Dynamic Click to edit Master subtitle style Universal Analysis of Economic Quantities

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Click to edit Master subtitle style

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