PrepareDefinition and Scopes Of Economics · 1 min read
Definition Of Economics
Definition of Economics
Many experts have described economics in different ways based on what they think is most important.
Adam Smith defined it as how countries make and grow their money. Adam Smith (1776) defined economics as "an enquiry into the nature and causes of the wealth of nations". This means he looked at how a country gets rich.
John Stuart Mill said it is about how we make things and how we share them. John Stuart Mill defined economics as "the practical science of production and distribution of wealth". He focused on how goods are made and given out to people.
Davenport explained it using how much things cost in the market. Davenport defined it as "the science that treats phenomena from the standpoint of price". He felt that everything in economics is about the price tag on things.
Alfred Marshall felt that money is only useful if it helps people live a better life. Alfred Marshall defined Economics as "a study of mankind in the ordinary business of life". This means he was interested in how humans act every day to survive and stay happy.
The Most Accepted Definition
Professor Lionel Robbins gave a definition that almost every economist agrees with because it covers the main problems we face. Lord (professor) Lionel C. Robbins defined economics as "a science which studies human behaviour as a relationship between ends and scarce means which have alternative uses". This definition is popular because it talks about our unlimited needs, the limited resources we have, and how we choose between them.
Key points
- •Economists like Adam Smith, John Stuart Mill, and Alfred Marshall offered varying definitions of economics.
- •Adam Smith focused on the wealth of nations, while John Stuart Mill emphasized production and distribution of wealth.
- •Alfred Marshall viewed economics as the study of mankind in the ordinary business of life, linking wealth to human welfare.
- •Lionel C. Robbins' definition is widely accepted, highlighting human behavior in relation to scarce means and alternative uses.
- •Robbins' definition is considered embracing as it incorporates fundamental problems like wants, scarcity, and choice.