ECONOMICS

ECONOMICS

 Introduction

                            A subject should have a name or a title that facilitates a clear and correct understanding of its contents. In a subject like Economics,there are many books available with titles such as ‘Introductory Economics’, ‘Economics:An Introduction’, ‘Basic Economics’, ‘Elements of Economics’, ‘Elementary Economics’, ‘Fundamentals of Economics’ etc. But these books have the same contents, though each is intended to serve readers of a different levels of interest and capacity.

Economics: Meaning

The term or word ‘Economics’ comes from the Ancient Greek oikonomikos (oikos means “households”; and, Nemein means “management”, “custom” or “law”). Thus, the term ‘Economics’ means ‘management

of households’. The subject was earlier known as ‘Political Economy’, is renamed as ‘Economics’, in the late 19th century by Alfred Marshall.

Wealth Definition:

Adam Smith

(The classical era) Adam Smith (1723- 1790), in his book “An Inquiry into Nature and Causes of Wealth of Nations” (1776) defines “Economics as the science of wealth”. He explains how a nation’s wealth is created and increased. He considers that the individual in the society wants to promote his own gain and in this process, he is guided and led by an “invisible hand”. He states that every man is motivated by his self interest. This means that each person works for his own good.

Economics: Its Nature

The nature of a subject refers to its contents and how and why they find a place in the subject. This nature is understood by studying the various definitions given by the notable economists. The existence of multiplicity of the definitions makes some scholars comment that a search for a clear definitionof Economics is an exercise in futility. J. M. Keynes, for example, observes that “Political Economy is said to have strangled itself with definitions”. Their presence makes studying a subject interesting, exciting, enjoyable, or worthwhile. In fact, their presence in a social science subject is a clear sign of the growth of the science.It indicates that there exists freedom for people associated with such as science to formulate fresh definitions. These associates appreciate and make use of the opportunity afforded to them and come up with a plethora of definitions saying: ‘The more, the merrier’. Each definition represents a unique generalisation. A widevariety of definitions paves the way to arrive a near-complete agreement on the subject-matter of Economics.