what is economics | Macroeconomics Nature scope economics meanings evolution economics |

WHAT IS ECONOMICS:-

Economics is a term of social science.  Social science means the study of human society and social relationship. Social sciences are consecutive with the study of people in a society. Economics is the research of choices or choice manufacturing. Choice manufacturing is suited for individual, families, institutions areas, state, towns, religion and nations and for the whole world. Economics has immense tool and relevant to all individual and institution.

MEANINGS OF ECONOMICS:

         The word economics come into existence from the Greek word “OIKOSNOMOS”. The Greek words are divided into two parts:

·       Oikos    means  (house)

·       Nomos means  (custom or laws and manage) which means manage an household.

DEFINITION:

“ECONOMICS IS THE RESEARCH OF PRODUCTION,DISTRIBUTION AND CONSUMPTION OF GOODS AND SERVICES.”

Another simple words:

            “Economics is the study of human wants ,human satisfactions and human efforts in a society.

EVOLUTION OF DEFINITION OF ECONOMICS:-

 An economist L.M FRASER has classified the definition of economics into two types.

Ø Type A

Ø Type B

Type A definition:

       Economics are related to wealth and welfare.

Type B definition:

     Economics are related to the means or resources or wealth.

WEALTH AND WELFARE DEFINITION:

    The classical economist Adam smith defined as the “science of wealth”. Among his followers J.B say defined as “the study of the laws which govern wealth”. F.A WALKER says defined as “Economies is that body of knowledge which relates to wealth”. J.E CRANES with J.S MILL and N.W senior defined economics as” Political economy is a science it deals with the phenomenon of wealth.”

                                  The neo classical Economists lead by Prof. Alfred Marshal gave economics a respectable place. He laid emphasis on man and his welfare and wealth was regarded as a source of human welfare, not an end in itself but a means to an end.

ADAM SMITH DEFINITION:-

                   The Adam smith regarded as the father of nation. He published a book title “An inquiry into the nature and causes of wealth of nations.”

He explained the concepts and principles governing, consumption, production, distribution and exchange of wealth.

AL-FRED MARSHALL DEFINITION:-

                             According to the Alfred Marshall defined economics as:

                   “Economics is the research of individual in the ordinary business of life. It examines that part of individual and with the social action which is most closely connected with the attainment and with the use of material requisites of well being.”

We may conclude from the above definition:

1.     Economics is the study of individual in the ordinary of life.

2.     Economics is a social science because it examines individual and the social action.

3.    The subject matter of economics is the attainment and the use of material requisites of well being i.e. material welfare.

4.    Economics is a study of both wealth and material welfare but more important is the material welfare.

ROBINS DEFINITIONS;-

          According to the Robbins defined economics as:

                   “Economics is the art of science which analyzing human behavior as a relationship between ends and scarce means which have alternative uses.”

NATURE OF ECONOMICS:-

Economics is a science:

Science is the collections of facts regarding any research work which is based on impartial analysis, experiments or observations, cause and effect relationship between economic agents. Further, economics helps in accommodate various sciences such as mathematics, statistics, etc. Economics helps is to determine the interrelationship between price, demand, supply and other economic factors.

Economics is an art:-

Art is a discipline that expresses the way things is to be done, so as to achieve the desired end. Economics has various branches like production theory, distribution theory, consumption theory and price theory. Economics that provide general rules and laws that is capable of solving different problems of the society.

Therefore, economics is treated as science as well as art, i.e. science in terms of its methodology, procedures and arts as in appliance. Hence, economics is exercised with both theoretically and practically aspects of the economic problems which we encounter in our day to day life.

SCOPE OF ECONOMICS:-

MICRO ECONOMICS:-

          Micro economics is composed of two parts:

·       micro

·       economics

The word micro means a millionth part. When we speak of micro economics we means a small part of whole economy that we are analyzing or in micro economics we analyse the unit e.g. a firm, a consumer or an industry. In other word we study an individual decision making unit. We study individual factors of production, saving, investment, income, employment, demand and supply. It is the study the way in which the decisions are taken by the economic agents, concerning the allocation of the resources. They are limited in nature.

Macro economics:-

Macro has been derived from Greek words macros which means large. It is that section of economics which studies the whole economy, alternative of individual units, i.e. N.I, total investment, total savings, total consumption, etc. it is the study of bulk and averages. It analyses the economic environment as a whole, where in the firms, consumers, households, and governments make decisions.

In macro economics the aggregate e.g. national income, price level, balance of trade (BOT) and balance of payment(BOP), level of employment, level of savings and investment.

The difference between micro and macro economics lies in the scale of study. In micro economics, more importance is given to determination of price, whereas macroeconomics it is concerned with the determination of income of the economy as a whole world.