Basic Economics

ics
Part A: Basic Economic Concepts.

NATURE OF ECONOMICS

political economy is all around you. It is about how society deals with the problem of scarcity. We cannot need everything we desire, whether it refers to continuous holiday or perfectly clean air. We birth to make choices. economic science is the study of how society makes these choices. Economics is not just about incomes, prices, and money. Sometimes it makes sense to use markets; sometimes we need other solutions. Economic analysis helps us to set when to leave things to the market and when to override the market
-David Begg, Stanley Fischer and Rudiger Dornbusch

1 blood line of Economics
Economics is a branch of social science. It commenced with the publication of disco biscuit Smiths book An dubiousness into the Nature and Causes of Wealth of Nations in 1776. sooner that economics was a part of politics, ethics and religion. In archean and middle part of the 19th century, it was called political economy. Towards the end of century, it was called Economics a change from political economy. Economics was derived from the Greek book of account Oikos (house and to manage). Thus, economics means to manage household affairs with curb fund available in the most economic style possible.

2. Definitions of Economics.




Economics has been defined in different ways in different times such as (1) Wealth (2) offbeat (3) Choice and (4) Growth.

Adam Smith:
Adam Smith, the father and first among the classical economists, defines economics as the science of wealth. His book An Inquiry Into The Nature And Causes Of Wealth of Nations is itself the definition of economics.

The implications of this definition are
(i)Human beings overhear wants to satisfy;
(ii)The main concern of economics is the satisfaction of homo wants; and,
(iii) Wealth satisfies human wants.

Thus, the study of economics show, how wealth is produced and spent. J. B. Say,...If you want to get a full essay, order it on our website: Orderessay



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