INTRODUCTION AND PRINCIPLES OF

Economics
Places and Landscapes in the Changing World
History of Economics
Economic history is the academic
learning of economies or economic
events of the past. Research is
conducted using a combination of
historical methods, statistical methods
and the application of economic
theory to historical situations and
institutions.
4 different Definitions
of economics
General Definition of
Economics
Adam Smith's Wealth
Definition
Marshall's Welfare Definition
Robbins' Scarcity Definition
General Definition
The English word economics is derived from the ancient
Greek word oikonomia-meaning the management of a
family or a household. It is thus clear that the subject
economics was first studied in ancient Greece.

Adam Smith's Wealth Definition

The formal definition of economics can be traced back to
the days of Adam Smith (1723- 90) the great Scottish
economist. Following the mercantilist tradition, Adam
Smith and his followers regarded economics as a science of
wealth which studies the process of production,
consumption and accumulation of wealth.
Marshall's Welfare Definition
Marshall defines economics as "a study of men as they
live and move and think in the ordinary business of life."
He argued that economics, on one side, is a study of
wealth and, on the other, is a study of man.

Robbins' Scarcity Definition

The most accepted definition of economics was given by
Lord Robbins in 1932 in his book 'An Essay on the Nature
and Significance of Economic Science. According to
Robbins, neither wealth nor human welfare should be
considered as the subject- matter of economics. His
definition runs in terms of scarcity: "Economics is the
science which studies human behaviour as a relationship
between ends and scarce means which have alternative
uses."
P u r p o s e o f e c o n o m i c s
u rp o s e o f e c o n o m ic s is
The p
n d e rs t a n d h o w a n
to u
m ic s y st e m w or k s, t o
e co no
s it s s tr e n g th s a n d
a s se s
e s s e s, a n d to re s olv e
w e a kn
econo m ic p r o b l em s .
Dis a d v a n t a g e o f e c o n o m i c s
m ic d is a d v a n ta g e w a s
Ec o n o
d in t e rm s o f p eo p le 's
de fi n e
o s it io n , th e ir in co m e ,
wo rk p
t h e y h a d a lo w i n c om e .
and if
n g t h s a n d w e a k n e s s e s ,
its s t re
t o r e s o lv e ec o n o m ic
an d
problems.
4 types of economics
Traditional Economic
System

Command Economic
System

Market Economic System

Mixed Economic System

Function of economics
Economics is a social science that
focuses on the production,
distribution, and consumption of
goods and services, and analyzes the
choices that individuals, businesses,
governments, and nations make to
allocate resources.
"Our necessities are few but our
wants are endless."
- Fortune Cookie
Thank You
for listening!