What is an economics simple definition
An Economics definition is the science that deals with production, exchange and consumption of various commodities in economic systems.
Economics definition explained how scarce resources can be used to increase wealth and human welfare.
The central focus of economics definition is on scarcity of resources and choices among their alternative uses.
History of economics explained us till now date many economists scientists given economics definition to the world by taking several aspects into account.
What are economic problem and its causes
The two major factors are responsible for the emergence of economic problems. They are: i) the existence of unlimited human wants and ii) the scarcity of available resources.
The numerous human wants are to be satisfied through the scarce resources available in nature. Economics deals with how the numerous human wants are to be satisfied with limited resources. Thus, the science of economics centres on want - effort - satisfaction.
Economics problem if not managed properly it can causes country economy problem in form inflation rate goes up, market consumer inside country market have to pay more to purchase daily items.
What are the 4 types of economics definition
The 4 types of economics definition are wealth economics definition by Adam Smith, welfare economics definition by Alfred Marshall, welfare economics definition by loinel Robbins, growth economics definition by Professor Paul Samuelson.
Wealth definition of economics
Wealth definition of economics given by Adam Smith (1723-1790) in his book title An inquiry into nature and causes of wealth of nation.
Adam Smith in his simple definition of economics explained the individual wants to promote his personal on gain and their is one invisible hand to promote growth of society. Ada Smith economist explained in his definition of economics as their is no intension to promote society intrest.
Criticism of wealth definition of economics
Adam Smith in his definition of economics tried to focus economics definition only in terms of wealth and not in terms of human welfare. Ruskin and Carlyle famous economics scientist both condemned economics as a dismal science as it taught selfishness which was against ethics. However, now, wealth is considered only to be a mean to end, the end being the human welfare. Due to strong criticism of wealth definition of economics was rejected and the emphasis was shifted from wealth to welfare.
Welfare economics definition
Welfare economics definition given Alfred Marshall (1842 - 1924) wrote a book “Principles of Economics” (1890) in which he defined “Political Economy” or Economics is a study of
mankind in the ordinary business of life.
According to Alfred Marshall economics definition examines that part of individual and
social action which is most closely connected with the attainment and with the use of the material requisites of well being.
The important features of Alfred Marshall economics definition are understood by three points:According to Marshall, economics is a study of mankind in the ordinary business of life, i.e., economic aspect of human life.
Economics studies both individual and social actions aimed at promoting economic welfare of people.
Marshall welfare economics definition data collection makes a distinction between two types of things, viz. material things and immaterial things. Material things are those that can be seen, felt and touched, (E.g.) book, rice etc.
Immaterial things are those that cannot be seen,
felt and touched. (E.g.) skill in the operation of a thrasher, a tractor etc., cultivation of hybrid cotton variety and so on. In his definition, Welfare economics definition of economics considered only the material things that are capable of promoting welfare of people.
Criticism of welfare economics definition by Alfred Marshall
After completed different types of research analysis of Alfred Marshall considered only material things. But immaterial things, such as the services of a doctor, a teacher and so on, also promote welfare of the population.
Marshall in his economics definition makes a distinction between two types those things that are capable of promoting welfare of people and those things that are not capable of promoting welfare of people.
But can't able to include anything, (E.g.) liquor, that is not capable of promoting welfare but commands a price, comes under the purview of economics.
Welfare economics definition by loinel Robbins
Welfare economics definition given by Lionel Robbins. Lionel Robbins published a book “An Essay on the Nature and Significance of Economic Science” in 1932.
According to Lionel Robbins welfare economics definition, “economics is a science which studies human behaviour as a relationship between ends and scarce means which have alternative uses”.
The major features of Robbins economics definition are Ends refer to consumer wants. Consumer behaviour have unlimited number of
wants.
Resources or means, on the other hand, are limited or scarce in supply. There is scarcity of a commodity, if its demand is greater than its supply.
Other words, the scarcity of a commodity is to be considered only in relation to its demand.
The scarce means are capable of having alternative uses. Hence, anyone will choose the resource that will satisfy his particular want. Thus, economics, according to Robbins, is a science of choice.
Criticism of economics definition of Loinel Robbins
Criticism of Economics definition given by Loinel Robbins does not make any distinction between goods conducive to human welfare and goods that are not conducive to human welfare.
In the production of rice and alcoholic drink, scarce resources are used. But the production of rice promotes human welfare while production of alcoholic drinks is not conducive to human welfare. However, Robbins concludes that economics is neutral between ends.
In economics, we not only study the micro economic aspects like how resources are allocated and how price is determined, but we also study the macro-economic aspect like how national income is generated.
But, Robbins has reduced economics merely to theory of resource allocation. Robbins definition does not cover the theory of economic growth and development.
Resources definition in economics
Resources definition in economics as the resources or inputs available to produce goods are limited or scarce. This scarcity induces people to make choices among alternatives, and the knowledge of economics is used to compare the alternatives for choosing the best among them.
For example, a farmer can grow paddy, sugarcane, banana, cotton etc. in his garden land. But he has to choose a crop depending upon the availability of irrigation water.