Nature of Economics - growth of economies will depend upon the

What is economics? consumption & production in the economy

- Queen of social science
- Oikos = household Difference between micro and macro economics
- Nomos = Management Microeconomics - economic problems of single industry
Macroeconomics – problems of an economy as a whole.
- efficient application or allocation of scarce resources. (large-scale)
- Maximizing behavior / optimizing behavior
--> Optimizing Importance of Microeconomics
" - Price Determination
Till 19th century - Helps in aggregate study economics
Economics was as "Political economy"
- "An inquiry into the Nature and Causes of the Wealth
of nations" or "The wealth of nations" by Adam Smith

Definitions of Economics according to:

Wealth
Adam Smith - "Father of modern economics"
--> Economics is the study of wealth
main objective: gain maximum wealth as possible

core of economic activity

- production
- distribution
- consumption
----> wealth -- material wealth

Welfare
Alfred Marshall
- study of mankind in the ordinary business of life. (how
one gets income, and uses it wealth; a study of wealth
and a part of study of man
- human being and their material welfare

Scarcity
Lionel Charles Robbins
- "Essay on the nature and significance of the economic
science"
- optimum utilization of scarce resources

3 basic features of human existence

-- Unlimited wants
-- Limited resources
-- alternative use of limited resources

Growth
Paul Samuelson
- efficient allocation of scarce resources for productive
purposes, choosing the best alternative,