Many economists have provided various definitions of economics, considering different factors. This means 'managing a household' effectively with the limited resources one has.
Wealth Definition
In his book “An Inquiry into the Nature and Causes of the Wealth of Nations” published in 1776, Adam Smith (1723–1790) described economics as the study of wealth.
Welfare Definition
In his book “Principles of Economics,” published in 1890, Alfred Marshall (1842–1924) described "Political Economy," defining it as the study of people in their everyday lives.
Welfare Definition
In 1932, Lionel Robbins released a book titled "An Essay on the Nature and Significance of Economic Science." He described economics as a discipline that examines human behavior in relation to objectives and the limited resources that can be used in various ways.
b) Economics encompasses not only microeconomic issues, like resource allocation and price determination, but also macroeconomic factors, such as national income generation. However, Robbins simplifies economics to only address resource allocation theories.
c) The scope of Robbins' definition overlooks aspects related to economic growth and development.
Growth Definition
Professor Paul Samuelson described economics as ''the study of how individuals and societies make choices about utilizing limited productive resources, which can serve various purposes, to create different goods over time and distribute them for current and future consumption among diverse people and social groups.''
This definition highlights several key points:
a) By incorporating the concept of time, Samuelson’s definition becomes dynamic, thus encompassing the theory of economic growth.
b) He emphasizes the issue of limited resources in relation to infinite desires, indicating that not only are resources scarce, but they also have potential alternative applications.
c) The definition addresses multiple components, such as production, distribution, and consumption.
Among the various definitions mentioned, Samuelson’s perspective on ‘growth’ stands out as particularly effective.