Managerial economics

Knowledge has many branches and economics is an important and useful branch of knowledge.The science of economics in the form in which we have it today is just 200 years old. It was Adam Smith who first defined Economics which was earlier known as political economy . What is economics and what should be the subject matter of Economics has been the questions of long debates. There have been many definitions of Economics given by different economists. Economics is that branch of social science which is concerned with the study of how individuals, households, firms, industries and government take decision relating to the allocation of limited resources to productive uses, so as to derive maximum gain or satisfaction .

Various definitions of Economics can be grouped under mainly Three heads:-  1) Wealth definition :- Wealth definition explained economics as a science of wealth. This definition was first given by Scottish philosopher Adam Smith in his famous book "An enquiry into the nature and causes of the wealth of the Nations". Sometimes in short known as "Wealth of nations".  He said economics enquires into the factors that determine wealth of the country and its growth. 2) Welfare definition :- It was given by professor Alfred Marshall ,who explained economics as a science of welfare (material welfare). Marshall said that, wealth is only the secondary object of study of Economics, it is man and his ordinary behaviour in life which is the primary object of economic study. 3) Scarcity definition :-  Robbins not only criticize Marshall definition and other welfare definition of economics, but also provided a new definition ,which he considered to be more scientific and correct...