Economics: a quick introduction

Economics was initially defined as "A Science of Wealth". Another definition by Adam Smith defined economics as "An enquiry into the nature and causes of wealth of nations." These descriptions were later rejected due to being too narrow in scope. A more logical definition of economics was put forward by Professor Dr. Alfred Marshall: "A study of mankind in ordinary business of life, it examine that part of individual and social actions which is closely related with attainment and use of material requisites"

This definition shed a new light on the field of economics, due to the number of important characteristics inherent in this definition. A brief review of these is given below:

1. A Social Science: Economics is a social science since it is concerned with the people living in a society. Since the human behaviour is not always consistent, therefore principles of economics cannot be as exact as the laws of natural sciences.

2. A Study Of Man: Economics is related to man; therefore it is an evolving living subject. According to Marshall, it studies the behaviour of man during the ordinary business of life.

3. Wealth As A Means Of Material Well Being: for human beings wealth is not the ultimate objective of human activities. Therefore wealth is studied as a source of attainment of material welfare.

4. Economics And Welfare: Economics is a welfare oriented subject. Those activities which do not promote material welfare of human beings are out of the scope of economics.

5. Materiality: Marshal stresses Economics as the "material requisite of well being". Therefore, all economic activities resolve around the acquisition and use of material goods like food, clothing etc. because they increase welfare of human beings. Non-material requisites like education, recreation do not fall directly under the scope of Economics.

However, a number of economists disagree from this definition of the scope of Economics. They insist that the definition is too limited in defining material welfare and offers a too vague concept of welfare. Since the human welfare is not limited to the attainment of material requisites and non material aspects of wellbeing are also necessary. Therefore, this specific definition does not extend, rather it limits the scope of economics.

There have been a number of other objections to this description as well, such its limited scope and unrealistic moral imperative. As a result, a number of other specific definitions are also well accepted in defining the scope and nature of Economics.