This watermark does not appear in the registered version - http://www.clicktoconvert.com UNIT –I: BUSINESS ECONOMICS AN INTRODUCTION Lesson: 1 – BASICS OF ECONOMICS CONTENTS 1.0 Aims and Objectives 1.1 Introduction 1.2 Definition of Economics 1.3 Nature of Economics 1.4 Let Us Sum Up 1.5 Lesson End Activities 1.6 References 1.0 AIMS AND OBJECTIVES After having studied this unit, you should be able · To Understand the fundamentals of Business Economics · To Know whether Economics is a Science or an Art · To Study the Basic Economic terminologies 1.1 INTRODUCTION Economics was formerly called political economy. The term Political economy means the management of the wealth of the state. “Adam Smith, the father of modem Economics, in his book entitled 'An Enquiry into the Nature and Causes of the Wealth of Nations’ (Published in 1776) defined Economics as a study of wealth. Smith considered the acquisition of wealth as the main objective of human activity. According to him the subject matter of Economics is the study of how wealth is produced and consumed. Smith's definition is known as wealth definition. 1