Economics defined in simple terms

1. What is economics?
Economics
Presented by Anmol Kumar Sharma

2. There is no generally accepted definition of
economics.
Jacob Viner says” Economists is that economists
do”
Maurice Dobb calls the effort of defining economics
scholastic dogmatism which is not arid but
achieves nothing.
There is no unanimity so far as definition of
economics is concerned. It is said that where there
are six economist there will be seven definitions.
Gunnar Myrdal goes to the extent saying, any effort
of defining economics is unnecessary and
undesirable.
But we will try to understand it by looking into various
definition given by various economists.

3. Adam smith
Smith in his book An enquiry into the nature and causes of
wealth of Nation published in 1776 as study of nature and
causes of the wealth of nations. It considers wealth as the
main point of emphasis in economics.
Criticism
This definition has reduced it to science of bread and
butter which teaches selfishness and lust for money. It
has been called Dark and dismal science. It meant that
man is guided by the urge of earning wealth only.

4. Science of welfare
Alfred Marshall in his book principles of economics defined it as a study of mankind in its
ordinary business of Life. It examines that part of individual and social action which is most
closely connected with attainment and with use of material requisites of well being. In short
welfare was considered as main point of study of economics
Criticism
Welfare cannot be quantified. This is limited in scope and narrow definition of economics.
Welfare Definition

5. Scarcity Definition Science of choice
Robbins defines economics as the science which studies human behavior
as a relationship between ends and scarce means which have alternative
uses.
Criticism
Major criticism is that scarcity is not always reason of economic problem
abundance also becomes problem as it was during g the depression of
thirties.

7. Subject matter of economics
The basics subject matter of economics is
The economy
The coordination process
The effects of scarcity
The science of choice
Human behavior
Human beings as to how they coordinate wants and desires, given
the decision making mechanisms, social customs and political
realties of society

8. Thank You