Economics Greek word : Greek word : “Oikonomos” means to “manage the house” Or management of household especially in those matters which are relating to the income and expenses of the family.

Economics definition Adam smith(1723 – 1790) The father of Economics.

Classical economist Adam Smith Western Philosophers Western Philosophers 18th century 18th century Birth: June 5, 1723 Scotland Death: July 17, 1790 (age 67) Edinburgh, Scotland. Death: July 17, 1790 (age 67) Edinburgh, Scotland. Father of Economics Father of Economics

Definitions According to Adam smith According to Adam smith ‘Economics is the science of wealth’. ‘Economics is the science of wealth’. Adam smith a Scotland economist wrote a book in 1776 named ‘'An inquiry into the nature and causes of wealth of nations’’. Adam smith a Scotland economist wrote a book in 1776 named ‘'An inquiry into the nature and causes of wealth of nations’’. In which he declared economics as all about the wealth. By wealth he means Goods and Services. In which he declared economics as all about the wealth. By wealth he means Goods and Services. Others early economist like F.A.Walker an American Economist said that body of knowledge which relate to wealth is economics. Others early economist like F.A.Walker an American Economist said that body of knowledge which relate to wealth is economics. French economist J.B.Say also favors smith’s view. French economist J.B.Say also favors smith’s view.

Continued The main features of Adam Smith definition are Production of wealth Production of wealth Consumption of wealth Consumption of wealth Exchange of wealth Exchange of wealth Distribution of wealth Distribution of wealth

Criticism In this definition there are some drawbacks which is pointed out by various philosopher of that time. Carlyle and Ruskin was most important of them. They think economics is dismal science means preacher of wealth, they also called economics a pig science. But followers of Adam smith, including J.B Say, J.S mill, Chapman defend smith’s view. In this definition there are some drawbacks which is pointed out by various philosopher of that time. Carlyle and Ruskin was most important of them. They think economics is dismal science means preacher of wealth, they also called economics a pig science. But followers of Adam smith, including J.B Say, J.S mill, Chapman defend smith’s view. Last quarter of 19 th century schaffle in Germany and Droze from French placed the role of man in economics higher than wealth. No undue importance is now attached to wealth, wealth is only means to an end, and end is human welfare. Thus emphasis has now shifted from wealth to man. Last quarter of 19 th century schaffle in Germany and Droze from French placed the role of man in economics higher than wealth. No undue importance is now attached to wealth, wealth is only means to an end, and end is human welfare. Thus emphasis has now shifted from wealth to man.

Marshall Definition of Economics Prof. Marshall(1842 – 1924) famous economist at the Cambridge university who wrote a book named Prof. Marshall(1842 – 1924) famous economist at the Cambridge university who wrote a book named “principle of economics” published in 1890 one of the great Economist define Economics as “a study of mankind in the ordinary business of life. It examines that part of individual and social action which is most closely connected with the attainment and use of material requisites of well being.” “principle of economics” published in 1890 one of the great Economist define Economics as “a study of mankind in the ordinary business of life. It examines that part of individual and social action which is most closely connected with the attainment and use of material requisites of well being.”

Prof. Marshall

Explanation Marshall redefine economics and eliminate the drawbacks of Adam smith definition. Marshall redefine economics and eliminate the drawbacks of Adam smith definition. Marshall gives important to the following points Marshall gives important to the following points 1economics study routine life 1economics study routine life 2economics deals with material welfare 2economics deals with material welfare 3man is more important than wealth 3man is more important than wealth

Criticism The definition is concerned with material welfare only and ignores non material services which makes an important contribution. The definition is concerned with material welfare only and ignores non material services which makes an important contribution. As welfare vary from person to person and from time to time. Therefore measurement of welfare is difficult. As welfare vary from person to person and from time to time. Therefore measurement of welfare is difficult. According to Robbins ’whatever economics is concerned with it is not concerned with the causes of material welfare’. According to Robbins ’whatever economics is concerned with it is not concerned with the causes of material welfare’.

Robbins (1889 – 1984) Definition Robbins was an English economist wrote the book named “Nature and significance of Economic science” in 1932 and occupied the chair of London school of economics in Robbins was an English economist wrote the book named “Nature and significance of Economic science” in 1932 and occupied the chair of London school of economics in Marshall settled the matter of definition of economics long ago and large consensus of expert opinion has been mobilized behind him, but Robbins set the ball of controversy rolling once again. Marshall settled the matter of definition of economics long ago and large consensus of expert opinion has been mobilized behind him, but Robbins set the ball of controversy rolling once again.

Definition “Economics is the study of human behavior as a relationship between unlimited wants and limited resources which have alternative uses” “Economics is the study of human behavior as a relationship between unlimited wants and limited resources which have alternative uses”

Explanation In according with the Robbins definition, the human behavior covers following aspect 1. Wants are unlimited 2. Wants are different in intensity 3. Means are scare 4. Alternative uses of means

Wants are unlimited Man, from birth till death, continues to pass through the jungle of wants. As unending chain of wants keeps continues to expanded every day. Man needs milk at time of birth and coffin at the time of death and his entire life is consumed in making untiring efforts for satisfying the unlimited wants. Man, from birth till death, continues to pass through the jungle of wants. As unending chain of wants keeps continues to expanded every day. Man needs milk at time of birth and coffin at the time of death and his entire life is consumed in making untiring efforts for satisfying the unlimited wants.

Means are scarce Means are scare in relation to demand for satisfaction. The scarcity problems faces by every man, not concerned poor or rich because the person is rich the wider would be range of his wants. Means are scare in relation to demand for satisfaction. The scarcity problems faces by every man, not concerned poor or rich because the person is rich the wider would be range of his wants. If there no scarcity there would no need of economics, that is why man adopted economic behavior. If there no scarcity there would no need of economics, that is why man adopted economic behavior.

Alternative use of means One characteristic of scarce means is that we can use it for different purpose, e. g money could purchases food and also bread, and also wine. One characteristic of scarce means is that we can use it for different purpose, e. g money could purchases food and also bread, and also wine. So from Robbins definition we can conclude that through scarce means we will satisfy unlimited wants through efficient use of resources. So from Robbins definition we can conclude that through scarce means we will satisfy unlimited wants through efficient use of resources.

Criticism Less importance to human being. Less importance to human being. The definition is focusing on resources more than on human being. The definition is focusing on resources more than on human being. Ignores macro aspect. Ignores macro aspect. Difficult to understand. Difficult to understand.

Conclusion Robbins definition is the most popular one. Robbins definition is the most popular one. In spite of objections, most of the modern economists use Robbins view, which describe and explain the nature of economics. In spite of objections, most of the modern economists use Robbins view, which describe and explain the nature of economics. It is now universally accepted that scarcity of resources and the consequent need for choice is the essence of economic science. It is now universally accepted that scarcity of resources and the consequent need for choice is the essence of economic science.

Conclusion The modern economists define economics as a science of growth and efficiency. The modern economists define economics as a science of growth and efficiency. In the words of C. R. McConnell: In the words of C. R. McConnell: Economics as a science of efficiency in the use of resources so as to attain the greatest or maximum fulfillment of society’s unlimited wants. Economics as a science of efficiency in the use of resources so as to attain the greatest or maximum fulfillment of society’s unlimited wants.