What is Economics? OR Definition ofE Economics? OR Scope of Economics Wealth Definition (Science of Wealth) Welfare Definition (Science of material well-being) Scarcity Definition (Science of choice making) Growth Definition (Science of dynamic growth and development)
Wealth Definition Given by Adam Smith. Who is known as Father of Economics. Adam Smith is Classical Economist. In the 1776 year. Title of the book-"An Inquiry into nature and causes of wealth of nation." "Economics is study of wealth."- J.B say
Wealth Utility. Want-satisfying capacity. Scarcity. Limited ability. Transferability. Note- Skills are not considered as wealth. E.g., Skills of teacher, skills of doctor etc. Doctor's knowledge and skills can not be transferred to any other person.
Stress on nation wealth. Addressing the problem of economic growth. Attention to important economic issues. Merits of Wealth Definition
Complete ignorance of human being welfare and society welfare. Too Materialistic. Criticisms
Welfare definition Given by Alfred Marshall In the year of 1890 Book's name- "Principle of Economics" "Economics is study of mankind in ordinary business of life. It examines that part of individual and socialI action which is closely connected with the attainment and use of material requisite of well being. Thus it is on the one side a study of wealth and on the other and more important side a part of the study of Man."
MankindOrdinary Business of life Action Individual Social Material Reauisite Welfare
Material requisite- Definition of material requisite by Prof Pigou "The range of economic enquiry should be restricted to those activities which can be measured in terms of money"
Welfare Definition Normative Science (ideal)- "what ought to be?" According to Marshall- "Economics is the engine of Social Betterment" Like Suggestions, Advice etc. E.g.Inflation(price-rise) is not good for country like India E.g., Minimum wages should be provided to workers