This document provides an overview of economics, including definitions of economics from prominent economists like Adam Smith, Alfred Marshall, Lionel Robbins, and Paul Samuelson. It discusses their definitions of wealth, welfare, scarcity, and growth and the key features and criticisms of each. The document also covers the introduction, scope, and divisions of economics as well as comments on the nature of economics from economists like Paul Samuelson.

1. ECONOMICS
Dr. A. SATHEESH BABU
Assistant Professor, Department of Economics
VIVEKANANDA COLLEGE
(Residential & Autonomous –A Gurukula Institute of Life Training)
TIRUVEDAKAM WEST, MADURAI DIST– 625 234, TAMIL NADU

2. ECONOMICS
• Introduction
• Political Science – Political Economy
• Adam Smith –Father of Economics
• An inquiry into the Nature and Causes
of Wealth of Nations - 1776
• The word “Economics” was derived
from the Greek word Oikonomia which
means Household Management .
• The word “Oikonomia” divided into two
words “Oikos - Household” and “nemein
- Management”.

3. ECONOMICS
• Meaning
• At present Economics is a social
science that deals with human wants
and their satisfaction.
• In other words, Economics is a social
science that studies about production,
distribution and consumption of goods
and services.
• Generally, Economics is a social
science which studies the human
behaviour inrelation with consumption,
production, distribution and exchange
in their day to day life.

4. Scope of Economics
• Subject Matter of Economics
• Divisions of Economics

5. Subject Matter of Economics
1. Wants
2. Efforts
3. Satisfaction
If one want is satisfied another want will arise
automatically.
Wants
Efforts
Satisfaction

6. Divisions of Economics
1. Consumption: Consumption means destroying
of utility. Consumption is the branch of
economics that deals with the satisfaction of
human wants.
2. Production: Production means creation of
utility or wealth. Under production, we study
about the laws which govern the factors of
production.
3. Distribution: Distribution means sending of
goods from one place to another etc.
Distribution studies about how the wealth
produced by the four factors of production are
distributed among these factors as rent,
wages, interest and profit.

7. Divisions of Economics
4. Exchange: Exchange means replace or
substitute of one good to another good or one
good by money etc.
5. Public Finance: Public Finance deals with the
income and expenditure of public authorities
like Central, State and Local Governments
with the adjustment of one to another.

8. ECONOMICS
• Definitions
• Wealth Definition – Adam Smith
• Welfare Definition – Alfred Marshall
• Scarcity Definition – Lionel Robbins
• Growth Definition – Paul Samuelson

9. Wealth Definition
Adam Smith defines
Economics as the Science
of Wealth. According to
Smith, Economics was
regarded as the Science
which studies about
production and
consumption of wealth.
An Inquiry into Nature and Causes of
Wealth of Nations - 1776

10. Wealth Definition
Adam Smith defines
Economics as the Science
of Wealth. According to
Smith, Economics was
regarded as the Science
which studies about
production and
consumption of wealth.
An Inquiry into Nature and Causes of
Wealth of Nations - 1776

11. Features of Wealth Definition
1. Study of Wealth
2. Material Goods only
3. Wealth Changes
4. Maximization of Own Wealth of an
Economic Man

12. Opinions of Wealth Definition
Thomas Carlye, Charles Dickens, William
Morris and Mathew Arnold
• Bread and Butter Science
• The Gospel of Mammon
• A science which taught selfishness
• A Dark and Dismal Science
• A Bastard Science
• A Pig Science

13. Criticism of Wealth Definition
1. To much Emphasis on Wealth
2. Restricted Meaning of Wealth
3. Concept of Economic Man
4. No Mention of Man’s Welfare
5. Economic Problem
6. Defective Logic

14. Welfare Definition
Alfred Marshall defines
Economics thus: “Political
Economy” or Economics is 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 with the use
of the material requisites of
well-being.
Principles of
Economics - 1890

15. Features of Welfare Definition
1. A Study of Mankind
2. A Study of Social Actions
3. Study of Material Welfare
4. A Normative Science

16. Criticism of Welfare Definition
1. Excludes Non-Material
2. Contradictory Definition
3. Classificatory Definition
4. Welfare is Immeasurable
5. Welfare involves Value Judgment

17. Scarcity Definition
Lionel Robbins defines
Economics is a science
which studies human
behaviour as a
relationship between ends
and scarce means which
have alternative uses.
An Essay on the Nature and Significance of
Economic Science - 1932

18. Implications of Scarcity Definition
1. Human Wants are Unlimited
2. Scarcity of Means
3. Alternative Uses of Scarce Means
4. Choice Making

19. Features of Scarcity Definition
1. Leading to Choice
2. Analytical and Scientific
3. It is Universal in Application
4. Widening of Scope of Economics
5. A Positive Study
6. Opportunity Cost
7. The Concept of Scale of
Preferences

20. Criticism of Scarcity Definition
1. Too Narrow and Too Wide
2. Old Wine in a New Bottle
3. It offers only Light but not Fruit
4. It ignores Economic Growth
5. Economics of Abundance
6. Not Applicable to Underdeveloped
Countries
7. No Human Touch (No Rationality)

21. Growth Definition
Paul Samuelson defines
Economics as the study of how
men and society choose, with or
without the use of money, to
employ scarce productive
resources which could have
alternative uses, to produce
various commodities over time,
and distribute them for
consumption, now and in the
future among various people and
groups of society.
An Introductory Analysis - 1948

22. Remarks on Economics
Economics is the Oldest of the Arts,
the Newest of the Sciences, indeed
the Queen of the Social Sciences.
- Paul Samuelson

23. Features of Growth Definition
1. Acceptance of Alternative uses
2. Incorporation of Time Element
3. Emphasizes the Distribution and
Consumption
4. Applicable in Barter System
5. Universal Application