Definition of Economics - Introduction to Microeconomics Video Lecture - CA Foundation

till now we've studied for the second
mix and what is micro and macroeconomics
now we see how economics has been
defined by eminent eminent economists
many economists have tried to define
economics some have defined it as
science of wealth
others have defined it as the science of
material well-being that is weighted
others have defined it as a science of
choice making choice making and finally
a couple of them have defined economics
as a science of dynamic growth now let's
see who has defined economics in what
way the first person to define a convex
was Adam Smith he defined economics as
an inquiry into the nature and causes of
wealth and inquiry into the nature and
causes of wealth of nations now this
definition told people about economics
that economics is nothing but the study
of wit it is the inquiry into the nature
and causes of wit what is felt of what
is wealth and how do you create well
what are the causes of it how do you
grow well this definition was given by
Adam Smith he published his book in 1771
with the same title and inquiry into the
nature and causes of Wealth of Nations
the next definition was given by Jay BC
he said science which deals with well
physical mix this was one of the most
simple definitions at that time
economics was only one-dimensional it
was only belt oriented so he said
science which deals with wealth is
economics then we come to the material
banking definition of economics it was
the first time that economics was
perceived something more than that it
was the first time that mastery told
people that economics is not only about
wealth it is more than myth so how did
he define economics he said economics is
a study of mankind in the ordinary
business of life it is the study of
mankind
this was very differentiated they said
economics is the study of this he said
it is the study of matter further it
examines that part of individual and
social action which is most closely
connected with the attainment and the
use of materials it visits of building
he said it is study of that part of
mankind which is related with attainment
that is achieving acquiring it and then
putting it to use for what for material
well-being of man now he said it is
related with weight but it is not only
related with way it is related with
achieving wealth and then putting it to
use for the welfare of human beings thus
it is on one side the study of wealth
and on the other the more important side
of part of study of man it is not only
the study of them but it is the study of
a more important concept or more
important thing that is the man himself
so he so he increased the scope of
economics next
people try to define economics in his
own way but his definition is also
considered as best definition of the
material well-being definition the range
offer enquiry becomes restricted please
note that he is talking about the
employment but now he's limiting the
range of inquiry Adam Smith said it is
an inquiry into the nature and causes of
it now he is also saying it is an
inquiry but it is a restricted inquiry
into what to that part of social welfare
that can be brought directly or
indirectly into the relation with
measuring-rod of money now two things to
note here
he said the inquiry becomes limited to
that part of social welfare
now it's contrasting definition from
what Adam Smith said he said it is a
study of width it was a very
materialistic definition but Picou is
defined in economics as an inquiry into
that part of social welfare social will
tell me where the public is benefited
where the masses are benefited it is for
the welfare of the general cause that
can be brought directly or indirectly in
relation with the measuring-rod of money
and how do you measure that welfare by
money so be saying right you measure the
economics you measure so he said right
you measure the economics with money but
it is not only related to money it is
related to a bigger concept of bigger
issue which is social welfare this ends
our definition about economics as being
a science of materiality
further economics was defined as a
science of choice making who defined it
professor
Lionel Robbins and what did he say about
economics
economics is a science which deals with
human behavior as a relationship between
end and scarce means which have
alternative uses he said it is a science
which studies about human behavior now
this was the first time actually when
economics was formally called as science
before this they all before this they
always defined economics as a study but
the first time mr. Robbins defined
economics as a science science of what
science which studies human behavior
further he said it studies human
behavior as a relationship between ends
and scarce means end means bonds and
scales means our limited resources when
I would like to draw our attention back
to our first video wherein we studied
waters economics we said economics is
trying to strike a balance between
limited resources and unlimited one this
is precisely what mr. Robbins was trying
to convey he is saying that it is a
relation between ends between wants and
scarce meat that is limited resources
scarce resources depleting resources
which have alternate uses now these
resources do not have single use they
have alternative uses
now there are four things to talk about
first it is sines second it talks about
ends that is one third it talks about
scarce means and finally those scale
means have alternative uses so I have
explained you that economics is a
science it is a body of knowledge it
studies about you
behaviors further science it studies
about human wants it studies about human
cravings it studies about human needs
and how are those needs those needs are
never-ending if one want a satisfied
other option if that is satisfied a new
one takes birth so this process goes on
and not only this process at a
particular time humans have multiple
ones
so in short humans have endless wants
unlimited wants but the means to satisfy
them are limited means to satisfy them
are scarce so he said it is a balancing
act how do you balance unlimited wants
and limited means now if this was the
situation if resources were limited and
means once were unlimited we would not
have problems because we knew what
resources are to be applied for what
ones and we did not have any problem
making a choice there was no question of
making a choice so where does this
question of making choice arise it is
because of these alternative uses a
single born as alternative uses a single
hundred rupee note
can help you go to a movie can buy you
an ice-cream can buy you more give can
recharge your phone you want unlimited
agreed but the resources to satisfy them
are limited not only limited they have
alternative uses this is where the
problem of choice making comes in so
this is how we define economics as a
science of choice making finally we come
to the last definition of economics
economics as a science of dynamic growth
and development now what does this term
dynamic
and development dynamic growth we become
makes is a science which is related to
brute it is not an individualistic
science of only about making choices it
is related with growth and development
so mr. Paul Samuelson was the first
person who try to define economics in
this fashion
what did he say economics is the study
of how men and society choose with or
without the use of money to employ
scarce resources for product to employ
scarce productive resources which could
have alternate uses now if you look
carefully till here he's subscribing to
the definition of Lionel Robbins he's
saying the same thing he's saying
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 alternate
uses this is exactly what Daniel
Robinson he adds to it by saying to
produce various commodities over time
and distribute them for consumption he's
adding to mr. Robbins definition he's
saying agreed economics is about
choosing how to use resources because
they have alternative uses but it does
not end it you have to put those
resources to use you have to put those
resources for production so that goods
are produced and they are distributed
for final consumption now and in future
amongst various people and groups of
society he just added a single line
saying the sources have alternatives but
they have to be put to use for
production of
and those boots have finally to be
supplied to the Society for consumption
and this is the cycle which leads to
growth you produce you consume you
produce you consume and this is how you
grow so economics is a science of quote
next Henry Smith try to define economics
as the study of how a civilized society
one obtains the share of what other
people have produced and how the total
product of the society change is
determined it's exactly same he is
talking about economics as a study of
how a sip in a civilized society one
obtains the share of what other people
have produced again he's talking about
production he's talking about to fruits
producers and the consumers and he's
saying people produce and the society
consumes but over a period of time the
total product of the producers changes
it goes on increasing and economics is
nothing but study of this changing total
product brewing total product signs of
growth in development finally Jacob
Viner
try to define economics as economics is
what economists do now this is the
simplest definition of economics you'll
ever find
he said economics is nothing but what
economies do whatever an economist does
is economics he may try to find out the
new theory he may try to give a new
proposition you may try to give you new
concepts about economics whatever he
does is economists this ends our topic
definition of economics