Helpful for Commerce Students

1. FUNDAMENTALS OF
BUSINESS ECONOMICS
{CC 103}
B.COMSEM-I

4. DEFINITION
• In 19th century Prof. Alfred Marshall’s wrote
his book entitled “ Principles of Economics".
In his book he defined “Political economy or
Economics is a study of mankind in the
ordinary business of life. It examine 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

5. MAIN IMPLICATIONS OF THE
DEFINITION
• Man is more important than wealth
• Economics studies the economic aspect of the
life of human beings
• Economics deals with individual as also social
action
• Only physical wealth is considered
• Wealth is an instrument and welfare is the goal

6. LIMITATIONS OF THE DEFINITION
• Economics is a human science
• Mentioned only material goods
• Relationship between economic activities and
welfare
• Measurement of welfare is difficult
• Economics is a positive science.

7. THANKYOU
Prepared by
Dr.Jagdish Maheshwari
Assistant Professor,
Tolani Institute of Commerce,Adipur