Topic: Meaning And Definition Of Economics
Table Of Content
- Meaning And Explanation Of Economics
- Definition Of Economics By Different Economists
Meaning And Explanation Of Economics
Economics like other social science has no specific definition. Other social science apart from economics include: political science, sociology, anthropology, psychology etc. Economics has been defined in many ways by various economists as a social science which studies human beings & their behavious. The reasons for many definitions seems to be that Economists see this subject from different points of view or they define may be interested in different aspect of economics such as monetary economics, industrial economics, business economics, welfare economics, economics of international relations etc.
They therefore define economics to reflect their interests. There is no definition of economics which is all embracing. These inevitable variation in the definition varies because of the fact that the subject studies human beings & their behaviours which can never be the same.
Economics could also be influenced by the condition prevailing at the time of writing, for example An economists writing during a period of economic recession may include aspects of it in his definition, He could say for instance that “Economics deals with the way by which economy could be realised through a judicials use of source resources”.
Economic Recession: simply means a temporary decline in economic activities in a country.
Economic studies the following aspect of human activities production, distribution & uses of goods & services (exchange). The earliest definition were interest of wealth or material welfare.
Definition Of Economics By Different Economists
Below are some definition of economics by some of the experts in the subject:
1. Adam Smith (1776): Adams Smith is regarded as the father of economics as a discipline. He define economics as an inquiry into th nature & cause of the wealth of nations. To him, Economics is all about the making of wealth. Adam Smith was the first person to put a work together or economics by writing attractive wealth of nations. Adam Smith was interested in the wealth aspect of political economics. His main interest was to investigate the reason for the disparity between countries in terming of wealth. That is why some countries are poor and under-developed while others are rich and developed.
2. John Stuart mill (1843): He defined economics as the practical science of production and distribution of wealth. Mill was interested in what determines the amount of wealth possessed by an individuals or how people produce and distribute wealth or various goods and services among members of society, that are required for the maintenance of human existence.
3. Alfred Marshal: Marshal looked at economics as the “studying of mankind in the ordinary business of life”. This definition simply emphasizes that economics have something to do with the study of human being in relations to their daily economics activities. To him economics become the study of wealth on the one side and on the more important side, apart of the study of man while it is engaged in his daily economic activities. He is engaged in his day economic activities. He was interested with behaviour of individual in their capacity as producer and consumers of goods and services.
4. H.J. Davenpory: He defined economics as “The science that treats phenomena from the stand point of price”. This definition stressed the importance og exchange and seeks to explain that economics deals with things that have a price attached to it.
5. Arc -Pigou: According to pigou, economics is “The science of material welfare”. To him, economics is all about acquiring material wealth which improves areas in the welfare of human beings. Pigou is interested in consumption which is an aspect of welfare economics. To him, economics should concern it self with how to increase the material well-being or standard of living of man by increasing total production.
6. Professor Lionel C. Robbins (Robbins 1932): Robbins defines economic as “The science which studies Human Behaviour, As a relationship between ends and scarce means which have attemptive uses”
Robbins definition is the most widely accepted definition of economics because it covers some major aspects of economics.
The definition also points to the fact the resource (means) at our disposal have more than one use. Its definition is analytical and the most scientific and most embracing because it embodies the basic concepts of economics and the main fundamental problems of man.
Briefly stated, it’s definition shows that:
1. Economics is a social sciences since it studies Human Behaviour.
2. Human wants are unlimited.
3. There are limited resources which to satisfy the unlimited wants.
4. Scarce resource are capable of being put to alternative uses. The more the individual, the form or the government turn resources to one use, the less the resource available for other uses.