Introduction to Economics
Introduction to Economics
Economics is an important and useful branch of knowledge. The science of economics has been assuming greater significance day by day. Since, the knowledge of economics is being used for eradicating want, poverty and accelerating growth in the economic aspects of the world and also for eradicating want, poverty and unemployment from the human race. There are so many other problems, such as inflation, recession, population explosion, adverse balance of payment and so on, which cannot be solved without the adequate knowledge of economics. It is not easy to give a commonly accepted definition of economics. The set of definitions given by various economists fall into four broad categories :
1. as a science of wealth.
2. as a science of concerning material welfare.
3. as a science of scarcity.
4. as a science of accelerating economic activity.
M. Economics as á Science of Wealth : Adam Smith, the pioneer of the subject defined economics as a science of studying the process of production and consumption of wealth. The title of Smith's book, 'An enquiry into the nature and causes of the wealth of nation' contains full emphasis on wealth. He wrote in his book,"The great object of the political economics is an inquiry into factors that determines wealth of the country and its growth. His followers like J.B. Say, J.S. Mill, Walker etc. supported his views. Social reformers like Thomas Carlyle, John Ruskin, Charles Dickens and William Morris reacted sharply to the wealth concept of economics. Since they ignored human welfare and considered wealth as an end of human activities, it laid more emphasis on wealth in place of man. It limits the scope of other activities of man.
V2. Economics as a Science of Concerning Material Welfare :
Marshall in his book 'Principles of Economics' published in 1890, described economics as science of material welfare. According to him, ("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 material requisites of well being." He emphasised on human welfare through material goods. Economists like A.C. Pigou, Cannon, Sir Beveridge etc.supported his ideas about economics.
The main features of his definition are:
(a) It is a study of man as such and not of wealth
. (b) It is a study of man's action in the ordinary business of life.
(c) It lays emphasis on material welfare as the primary concern of the science of economics.
1. as a science of wealth.
2. as a science of concerning material welfare.
3. as a science of scarcity.
4. as a science of accelerating economic activity.
M. Economics as á Science of Wealth :
Adam Smith, the pioneer of the subject defined economics as a science of studying the process of production and consumption of wealth. The title of Smith's book, 'An enquiry into the nature and causes of the wealth of nation' contains full emphasis on wealth. He wrote in his book,"The great object of the political economics is an inquiry into factors that determines wealth of the country and its growth. His followers like J.B. Say, J.S. Mill, Walker etc. supported his views. Social reformers like Thomas Carlyle, John Ruskin, Charles Dickens and William Morris reacted sharply to the wealth concept of economics. Since they ignored human welfare and considered wealth as an end of human activities, it laid more emphasis on wealth in place of man. It limits the scope of other activities of man.
V2. Economics as a Science of Concerning Material Welfare :
Marshall in his book 'Principles of Economics' published in 1890, described economics as science of material welfare. According to him, ("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 material requisites of well being." He emphasised on human welfare through material goods. Economists like A.C. Pigou, Cannon, Sir Beveridge etc.supported his ideas about economics.
The main features of his definition are:
(a) It is a study of man as such and not of wealth.
(b) It is a study of man's action in the ordinary business of life.
(c) It lays emphasis on material welfare as the primary concern of the science of economics.
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