Definition of economics
Discuss the diverse views on economics
Classical economics offers diverse definitions from various economists over time. In fact, the numerous interpretations of economics can be consolidated into broader categories or themes.
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1. Wealth Definition
Author: Adam Smith
- Definition: Economics is the study of the nature and causes of wealth of nations.
- Explanation: Adam Smith, regarded as the “Father of Economics,” emphasized wealth creation and accumulation. His book An Inquiry into the Nature and Causes of the Wealth of Nations (1776) focuses on how nations can prosper economically through trade, production, and labor.
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2. Welfare Definition
Author: Alfred Marshall
- Definition: Economics is the study of mankind in the ordinary business of life. It examines how wealth is acquired and used for promoting welfare.
- Explanation: In his book Principles of Economics (1890), Marshall shifted the focus from wealth to human welfare. He believed economics should study human behavior and how it contributes to societal well-being.
3. Scarcity Definition
Author: Lionel Robbins
- Definition: Economics is the science which studies human behavior as a relationship between ends and scarce means which have alternative uses.
- Explanation: In An Essay on the Nature and Significance of Economic Science (1932), Robbins argued that economics is about managing scarce resources to satisfy unlimited human wants. His definition highlighted the problem of scarcity and decision-making.
4. Growth-Oriented Definition
Author: Paul A. Samuelson
- Definition: Economics is the study of how people and society choose, with or without the use of money, to employ scarce productive resources that could have alternative uses to produce various goods and distribute them for consumption, now or in the future, among various persons and groups in society.
- Explanation: Samuelson emphasized both the present and future economic growth, along with resource allocation and distribution. His focus was on sustainable economic progress and development over time.
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Each definition reflects a different school of thought, showing the evolution of economics from wealth accumulation to welfare, scarcity management, and sustainable growth.