Economics First Lecture

7/29/2019 Economics First Lecture

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Dr. J.N Keynes was not for wrong whenhe said that Political Economy is said tohave strangled itself with definitions.

Economists like Pareto, Myrdal andHutchinson think that any search for aprecise definition of Economics is a

barren enterprise Pareto thinks it a waste of time to

investigate that what economicphenomenon may be


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Myrdal Economics is the only termregarding the precise definition of whicheconomists need not to be concerned

Hutchinson The actual assignment of adefinition to the word Economics doesnot appear to solve or even help in the

solution of any useful scientific problemwhatsoever that is why it is said needlessto waste words in defining economics itwill be an exercise in futility.


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Adam Smith (Father of economics)Economics was concerned with Anenquiry into the nature and causes ofwealth of nations.

J.E Cairnes Economics deals with thephenomenon of wealth.

J.B Says Economics is science whichtreats of wealth.

F.A WalkerEconomics is that body whichrelates to the wealth.


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Marshal Political economy or economicsis a study of mankind in the ordinarybusiness of life; it examines that part ofindividual and social action which ismost closely connected with theattainment and with the use of thematerial requisites of well being.

Beveridge Economics is the study of thegeneral methods by which mencooperates to meet their material needs


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Cannan The aim of political economy isthe explanation of the general causes

on which the material welfare of humanbeings depends.

Pigou the range of our inquiry becomesrestricted to that part of social welfarethat can be brought directly or indirectlyinto relation with the measuring rod ofmoney


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Economics does not regard wealth as the be-

all end-all of economic activities. Wealth issought for promoting human welfare. Hence,wealth is relegated to the secondary position.

Economics is not concerned with what is

called in Economics economic man i.e aman whose only motive is to acquire wealthfor its own sake and who is not influenced byhuman consideration in the pursuit of wealth.Rather economics deals with ordinary menand women who are swayed by love,affection and fellow feelings and not merelymotivated by the desire to get maximummonitory advantage.


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Economics is social science and not onewhich studies isolated individuals orRobinsons Crusoe we study personsliving in society influencing other peopleand being influenced.

Economics studies only material

requisites of well being or causes ofmaterial welfare. It has thus amaterialistic aspect and ignores non-material aspects


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Narrows down the scope of economics:It only speaks of material welfare and

ignores immaterial items. Relation between economics and

welfare: According to Robins there aremany things which does not promotewelfare but are regarded as economicactivities. i.e manufacturing and sale ofalcohol goods etc.


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Welfare is vague concept:Manufacturing of guns, tanks, and other

war heads the production of opium,liquor etc are not conducive to welfarebut these are all economic activities.

Impractical: The definition of welfare is oftheoretical nature. It is complex to dividemans activities into material and nonmaterial.


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ECONOMICS IS THE SCIENCE WHICHSTUDIES HUMAN BEHAVIOUR AS A

RELATIONSHIP BETWEEN ENDS ANDSCARCE MEANS WHICH HAVEALTERNATIVE USES


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Economics First Lecture

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