Economics Introduction - Magadh University

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The term derived fromECONOMICSancient Greek word

“OIKONOMIA”

Which

means

HOUSEHOLD

“An Enquiry into the

Nature and Causes of

Wealth of Nation”

published in 1776

Father of Economics

Adam Smith

Mother of EconomicsSCARCITY

Definition of Economics

Wealth Definition Welfare Definition Scarcity Definition

Adam Smith

(1723-1790)

Scotland

Alfred Marshall

(1842-1924)

England

Lionel Robbins

(1898-1984)

England

• Economics is “The Science of Wealth”.

• According to Adam Smith, Economics was regarded as the

science which studied the production and consumption of

wealth. It deals with acquisition, Accumulation and

Expenditure of wealth.

• J. B. Say, F. A. Walker, B. Price, J. E. Cairnes and many

other economist follows.

Adam Smith(1723-1790)

Scotland

Wealth Definition: Adam Smith

• His book “Principles of Economics” published in 1890

• Definition – 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”

Welfare Definition: Alfred Marshal

Alfred Marshall

(1842-1924)

England

“Alternative Uses” = Substitute

Scarcity Definition: Robbins

Lionel Robbins

(1898-1984)

England

• Book “Nature and Signification of Economics” in 1932

• “The science which studied human behaviour as a

relationship between ends and scarce means which have

alternative uses”.

“Ends” = “Unlimited Wants”

“Scarce Means” = “goods and services are limited”

Definition of Economics

Wealth Definition Welfare Definition Scarcity Definition

A Social Science that studies individual and group decision on how to use scarce

resources to satisfy their wants and needs.

Oxford