History and Definitions of Economics | Dr. Sukhwinder Singh Cheema

1. Dr. Sukhwinder Singh Cheema Assist. Prof. in Teaching of Economics M.A.(Eco.), M.Ed, M.Phil.(Edu.), Ph.D.(Edu.), NET(UGC), PTET-II Science & Math, Malwa Central College of Education for Women (Ludhiana) Follow Me at: www.sukhwindercheema24.wordpress.com www.twitter.com/ssscheema

2. History of Economics Economics has its origin in Greece, in the writings of Plato and Aristotle. Aristotle wrote a book named “Economica” in 2500 BC.

3. History of Economics In 500 B.C. that Kautilya ancient Indian thinker who was a scholar at Takshashila and the teacher and guardian of Chandragupta Maurya, founder of the Mauryan Empire wrote the book Arthashastra which deals with treatise on statecraft, economic policy, military strategy and with profit and earning of the State written in Sanskrit.

4. History of Economics Under the name of 'Vishnugupta' (Viṣṇugupta) or Vishnu Sharma's Panchatantra in the 3rd century BCE. With the name Chanakya (Cāṇakya c. 350–283 BC).) he worte Kamsutra(c.350–283 BC) in the area of Medicine. The text was influential until the 12th century, when it disappeared. 

5. It was in 1776, when Father of Economics “ADAMSMITH” wrote a book titled “AN ENQUIRY IN TO THE NATURE AND CAUSES OF WEALTH OF NATION”, this subject take its birth.

6. Eytmological Meaning of Economics • The world “ECONOMICS” was derived from the Greek words “Okios” + “Nomos or Nemein” • OKIOS A HOUSE • NEMEIN TO MANAGE or DISTRIBUTE ECONOMICS = House Hold Management

7. Definitional Meaning of Economics Definition is the art of limiting contents of a subject within the range or circle of specific words and terms. It is neither possible nor desirable to start studying a subject before getting familiar with its definition, although sometimes it is indeed very difficult to select a single, all-inclusive and satisfactory definition.

8. Wantlessness Definition Scarcity Centred Wealth centred Definition Five Types of Definitions of Economics Welfare Centred Definition Growth Centred Definition

9. Wealth Centred definition According to Father of Economics Adam Smith,” Economics is the science which treats wealth.” • According to Prof.Walker “Economics is that body of knowledge which relates to wealth.” AdamSmith

10. Characteristic of wealth centred definition • Classical economists have considered wealth as beginning and end objective of the study of economics • Classical economists confined their study only to those persons who are directly concerned with economic activities. • Classical economists have imagined an economic man.

11. Characteristic of wealth centred definition • In classical definition, problem of scarcity and choice is neglected. • In classical definitions, there is no discussion that what means should be adopted for accumulation of wealth. • In these definitions no importance has been given to human welfare.

12. Welfare Definition • According to Marshall “Economics is a study of man’s action in the ordinary business of life, it enquires how he gets his income and how he uses it…..thus it is on the one side study of wealth and on the other and more important side, a part of study of man.” • According to Cannon," Economics is the study of the cause of material welfare.”

13. In the views of Penson,”Economics is the science of material welfare.” • In the views of Pigou,”Economics is the study of economic welfare, being described as that part of welfare which can be brought directly or indirectly into relation with the measuring rod of money.”

14. Characteristics of welfare centred definition • Economics is study of Normal, Social and Real man. • Economics is study of wealth but it is more a study of man. • Economics is study of economic activities only • Economics studies material requisites of well being

15. Economics not only deals with individual efforts but it also studies the activities of human which he performs as a member of society. • According to these definition economics is both science as well as art. • These definitions are classificatory which divides economic activites of people in two parts:-common and uncommon, welfare and non welfare.

16. Scarcity Centred Definition • In 1932 after criticizing Marshall's definition Lord Robbinsgave his own definition in his book "An essay on the nature and significance of Economic Science” . • "Economics is the science that studies human behaviour as relationship between ends and scarce means which have alternative uses.”

17. Characteristic of scarcity centred definition • It is a scientific definition. • It is an analytical definition. • This definition states that economics is pure science and it is positive one rather than normative one. • This definition has wider scope as it includes all activites whether good or bad, moral or immmoral,ethical or unethical.

18. Characteristic of scarcity centred definition • Economics is neutral as regards ends. • Robbins definition is universal definition of economics as it is concerned with problem of unlimited wants and scarce means. • This definition has widened the scope of economics. In economics, economic activites of man related to all kinds of scarce means are studied.

19. GrowthOrient Definition • Modern economists like Keynes and Benhem consider Robbins definition as incomplete because it do not take into consideration the changing and widening nature and content of Economics. Modern economists have given many definitions:- According to Keynes, “In economics we study the administration of scarce resources and determinants of employment and income.”

20. According to Milton Friedman, “Economics is the science of how a particular society solves its economic problems. An economic problem exists whenever scarce means are used to satisfy alternative ends.” • According to Boulding, “Economics is a scientific study of economic quantities.”

21. Growth Oriented Or Modern Definition “Economics is the study of how Men and society choose, with or without the use of money, to employ scarce productive resources which could have alternative uses, to produce various commodities over time and distribute them for consumption now and in the future, various people and groups in society.” Prof. Paul Samuelson

22. Characteristics of the Definition • Production of Different goods in a Fixed Time Period. • Distribution of Production at present and in future . • Development and Change of Resources. • Determinants of employment, Income And Economic Development. • Efficiencies and In-efficiencies of Economy

23. Wantlessness Definition • In the words of M.K. Gandhi,“ The human mind is like a restless bird, the more it gets, the more it wants and still remains unsatisfied”. So, If there is increase in desires, it will create problems for human beings. • In the words of J.K Mehta, "Economics is the science of human activities considered as an endeavour to reach the state of wantlessness.”

24. Characteristics of definition • Economics is Science • Only human activities are considered in Economics • Objective of Economics is to achieve the state of Wantlessness .

25. Conclusion • Economics is a Science as well as an Art which study how Men and society choose, with or without the use of money, to employ scarce productive resources which could have alternative uses, to produce various commodities over time and distribute them for consumption now and in the future , various people and groups in society.”

26. Question Bank • What do you mean by term definition? • In how many classes the definition of economics can be divided? • Who is the father of economics? • Give the name of the book written by Lord Robbins? • Give any two characteristics of wealth centred definition? • To which category of definition Marshall and Pigou belongs to? • Give definition of Robbins in your words? • Name any two modern economists? • To which category of definition Keynes belongs to? • Give Gandhian views regarding wantlessness definition?

27. THANKS