PRESENTATION OF ECONOMICS

HAMAIL RAJA

BBA 4 – C

2212006
 TOPIC
Basic concepts and definition of Economics
CONTENTS
 The word of economics​
 Definition of the economics
 ​Scope and importance of economics
 Microeconomics and Macroeconomics
​
Basic concepts and definition of Economics 4

THE WORD “ECONOMICS”

The term ‘Economics’ is derived from Greek word ‘Oikonomia’
Its meaning is ‘household management’
 Basic concepts and definition of Economics 5

ADAM SMITH VIEW ON ECONOMICS

• Adam Smith (Scotland 1723-1790)
• The father of Economics
• Introduce first time economics as a subject
• On his book The Wealth Of Nation(1776)
• “Economics is the science of wealth”
Basic concepts and definition of Economics 6

ALFRED MARSHALL VIEW ON ECONOMICS

• Alfred Marshall (UK 1842-1924)

• One of the most influential economist of his time
• Principles of Economics (1890)
• Marshall argued that economics is the study of wealth and mankind
• “Economics is the science of material welfare of human”
Basic concepts and definition of Economics 7

LIONEL ROBBINS VIEW ON ECONOMICS

• Lionel Robbins (UK 1898-1984)

• A well known economist
• ‘Nature and Significance of Economic Science’
• Economics is the study of human behavior as a relationship between ends and scarce means which have
alternative uses”
Basic concepts and definition of Economics 8

MODERN DEFINITION OF ECONOMICS

• “Economics is the field of study that how societies use scarce resources to produce valuable commodities and
distribute them among different people”
• “Economics is the social science that studies how individuals, organizations and societies manage the scarce
resources under their control for the satisfaction of their needs and desires.”
• Three important points in the introduction of economics or in the philosophy of economics
• Scarce Resources: The goods and resources are scarce/rare/limited relative to unlimited desires and wants.
• Unlimited Wants: The desires and wants are unlimited.
• Alternative options/Efficient use: The society must use its resources efficiently through alternative options.
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MICROECONOMICS VS MACROECONOMICS

MICROECONOMICS MACROECONOMICS

• To study the small events of the economy • The study of economy as a whole.
• To study the individual entities e.g. • For example
household , firm , consumers , producer. • To study the overall performance of the
economy GDP.
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