Learn Economics by Dr. Swati Gupta

  Definitions of Economics given by Adam Smith, Alfrad Marshall and Robbins The word ‘Economics’ was derived from the Greek words ‘Oikos’ (a house) and ‘Nemein’ (To manage), which meant managing a household, using the limited money or resources a household has. Economics as a subject came into being with the publication of very popular book in 1776, “An Enquiry into the Nature and Causes of Wealth of Nations”, written by Prof. Adam Smith. At that time, it was called Political economy and regarded as a branch of statecraft. The great Indian statesman, Kautilya, named his book on statecraft as Arthashastra, the Hindi equivalent of ‘Economics’. Various definitions were given by various economists’ time to time. L.M.Fraser has classified definition of economics into Type A and Type B. Type A definitions are related to wealth and material welfare and Type B is related to the scarcity of means.   Type A definitions   Adam Smith's Definition of Economics, it's features and criti...

  Robbins' definition, it's features, superiority and criticism Lionel Robbins provided a new definition of economics in his book, “ Nature and Significance of Economic Science ”, published in 1932. According to him, “ Economics is the science which studies human behaviour as a relationship between ends and scarce means which have alternative uses .” Robbin's definition is based on the following aspects: Ends or wants are unlimited and as one wants gets satisfied another arises that’s why we have to make a choice between the most urgent want and less urgent wants. Thus, the problem of choice arises. That is why economics is also called a science of choice. ‘Means ’or resources to satisfy human wants are limited. The means refer to goods and services which are used to satisfy human wants. These resources are scarce and to be used optimally to get maximum satisfaction. For example, money is an important means to satisfy many of our wants. We use it optimally and make choice...