Definition of economics

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. He has given his definition in  his famous book "Nature and Significance of Economic Science". According to him, economic studies the problems which have arisen because of the scarcity of resources.

 

4) Modern Definition of Economics:- The modern definition, attributed to the 20^th-century economist, Paul Samuelson, builds upon the definitions of the past and defines the subject as a social science. According to Samuelson, “Economics is the study of how people and society choose, with or without the use of money, to employ scarce productive resources which could have alternative uses, to produce various commodities over time and distribute them for consumption now and in the future among various persons and groups of society.”