DEFINITION OF ECONOMICS

BY ECONOMISTS
 DEFINITION OF ECONOMICS
BY ECONOMISTS

 1.Wealth Definition (1776) Adam Smith

 2.Welfare Definition (1890) Alfred Marshall
 3.Scarcity Definition (1932) Lionel Robbins
LIONEL ROBBINS (1898-1984)

 An Essay on the Nature

 Significance of Economic Science
 SCARCITY DEFINITION (1932)
 "Economics is the science which studies human
behaviour as a relationship between ends and
scarce means which have alternative uses."
ends=wants
means=resources
 Example:
a
 Example
 In this case medicines are preferable to toys because his health
is more important than toys. That is why, the limited amount of
money will be spent on medicines.
 It means that economic problems must be solved according to
their state of preference. This is the line of action, which is
proposed by Professor Lionel Robbins.
IMPORTANCE OF STUDYING
ECONOMICS
The importance of Economics can be understood by the
following points given below:
1. HELPS IN DEVELOPMENT:
By the study of Economics one helps in the
development of economic life which leads us to
commercial and industrial stage.
2. CIRCULATION OF MONEY:
Study of Economics tell us about the circulation of
money within the state for various development.
 IMPORTANCE OF STUDYING
ECONOMICS
3. SOURCE OF UNDERSTANDING:
By the study of Economics one can easily recognize that their wants
are more than the resources they have and helps to improve in
certain areas.
4. USE OF HUMAN RESOURCES:
Study of Economics make the use of human resources to over come
the scarcity of the state.
IMPORTANCE OF STUDYING
ECONOMICS
5. TRADE ACTIVITIES:
Economics helps in the trade activities including
both domestic and international trade for increasing
national income.
6. BALANCED ECONOMY:
It helps in the proper circulation of money in all
hands hence making laws of a welfare state.
7. INCREASE ECONOMIC GROWTH:
By studying Economics one can easily understand
how to produce goods and services and increase
economic growth of the country.
 IMPORTANCE OF STUDYING
ECONOMICS
8. RAISE IN LIVING STANDARD:
By studying Economics proper money distribution
will raise living standard and automatically minimize
social,criminal activities and gambling etc.
9. SOURCES OF CONFIDENCE:
Economic growth helps to build the confidence of
businessmen to invest large amount without the fear
of lose.
IMPORTANCE OF STUDYING
ECONOMICS

10. PROPER TAXATION SYSTEM:

Good Economic system helps in the proper
taxation system which automatically contribute in the
development of country through superior public
services.