what is economicsSolutionTo understand Economics lets unders

what is economics

Solution

To understand Economics, let\'s understand following terms:

•Economy – A system that provides living to the people.

•Economic activity – any activity performed for earning money for the satisfaction of human wants.

•Economics is the social science that seeks to describe the factors which determine the production, distribution and consumption of      goods and services.

in other words, Economics is a social science concerned with those aspects of social behavior and those institutions which involve the allocation of scarce resources among unlimited and competing uses, to produce and distribute goods and services in the satisfaction of human wants, which are innumerable and insatiable.

Various definitions by different economists:

Adam SMith provided \"Wealth Definition\". Economics is a science which studies the nature, causes and growth of the wealth of nations. BUT n attention was paid to man for whom wealth is really meant.

•Welfare Definition by Alfred Marshall: –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 use of the material requisites of well being. Thus it is, on the one side, a study of wealth; and on the other, and more important side the study of man.

•Criticism

–Non-material goods are not acknowledged by Marshall.

–Limited to those activities which increase human welfare.

•Growth Definition by Paul A. Samuelson

is a study of how man and society choose, with or without the use of money, to employ scarce productive resources which could have alternate uses, to produce various commodities over time and distribute them for consumption now and the future among various people and groups of society.