Learn Economics by Dr. Swati Gupta

Alfred Marshall’s definition of economic, its features and criticism The neo-classical view : Welfare Definitions-Neo-classical economists focused more on welfare and the emphasis was shifted from ‘wealth’ to ‘ welfare ’. According to Cannan , “The aim of political economy is the explanation of the general causes on which the material welfare of human beings depends.” According to A.C. Pigou,” Economics studies that part of social welfare which can be brought directly or indirectly in relation with measuring rod of money.” Alfred Marshall in his book, “ Principles of Economics ”, published in 1890, describes economics as, “ It is the study of mankind in the ordinary business of life; it examines that part of the individual and social action which is most closely connected with the attainment and 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, a part of the study of man ”. The important fe...

                                       Adam Smith's Definition of Economics, it's features and criticism The classical view: Wealth Definition : The early economists like J.E. Cairnes, J.B.Say, and F.A.Walker have defined economics as a science of wealth. Adam Smith, the father of economics, in his book in 1776, “An Enquiry into the Nature and Causes of Wealth of Nations”, stated that “Economics is the science of wealth.” He defined economics as “A science which enquires into the nature and causes of wealth of nations.” According to him, wealth may be defined as those goods and services which command value-in- exchange [Value-In-Exchange means the amount of money or goods that is actually paid for a product or service.] and economics is concerned with the problems arising from wealth-getting and wealth-using activities of people. Thus, we study, in economics, about consumption, production...

Why We Study Economics Economics is the study concerned with the proper use and allocation of resources for the achievement and maintenance of growth with stability. An economy exists because of two basic facts- unlimited wants and limited resources. An individual or a society has to decide how to use its scarce resources to obtain the maximum possible satisfaction. It is this basic problem of scarcity that gives rise to many of the economic problems which have long been the concern of economists. We can say that  Economics studies the way a society chooses to use its limited resources which have alternative uses, to produce goods and services and to distribute them among different groups of people . When we study economics, we not only gain the skills needed to understand complex markets of an economy but also get strong analytical and problem-solving skills. There are four main reasons to study economics: ·       To learn a way of thinking, ·  ...