Economics

Economics is a social science concerned with the production, distribution and consumption of
goods and
services. It studies how individuals, businesses, governments and nations make choices on
allocating
resources to satisfy their wants and needs, and tries to determine how these groups should
organize and
coordinate efforts to achieve maximum output.
Economic analysis often progresses through deductive processes, much like mathematical logic,
where
the implications of specific human activities are considered in a "means-ends" framework.
Economics can generally be broken down into macroeconomics, which concentrates on the
behavior of
the aggregate economy, and microeconomics, which focuses on individual consumers.
Prof. Adam Smith
Adam Smith wrote a book in 1776 whose title was “Wealth of Nations”. In his book he discussed
the
word ‘wealth’ through its four aspects: production of wealth, exchange of wealth, distribution of
wealth
and consumption of wealth. Therefore it can be said according to Adam Smith: “Economics is a
science
of wealth”. Wealth means goods and services transacted with the help of money. According to
Adam
Smith “Economics was concerned with, An Enquiry into the Nature and Causes of Wealth of
Nations.”
As per definition of Adam Smith a key position was assigned to wealth in the study of
Economics. The
first person who introduced “Economics” as a subject was Adam Smith (1723-1790).
Prof. Alfred Marshall
Economics is the study of man in ordinary business of life. It enquires how he gets his income
and here
he uses it. It examines that part of individual and social action, which is most closely connected
with the
attainment and with the use of material requisites of well-being………………..It is the study of
wealth
on one side and on the other side, which is more important, it is a part of the study of man.
Prof. Lionel Robbins
Economics is a science which studies human behavior as a relationship between ends and scarce
means
which have alternative uses.
 Micro Economics
Microeconomics focuses on how individual consumers and producers make their decisions. This
includes a single person, a household, a business or a governmental organization.
Microeconomics
ranges from how these individuals trade with one another to how prices are affected by
the supply and demand of goods. Also studied are the efficiency and costs associated with
producing
goods and services, how labor is divided and allocated, uncertainty, risk, and strategic game
theory.
 Macro Economics
Macroeconomics studies the overall economy. This can include a distinct geographical region, a
country, a continent or even the whole world. Topics studied include government fiscal and
monetary
policy, unemployment rates, growth as reflected by changes in the Gross Domestic Product
(GDP) and business cycles that result in expansion, booms, recessions and depressions.