bishop westcottgirls’ school, namkom study material...

Bishop WestcottGirls’ School, Namkom Study Material

Academic Session 2020 - 2021 Date : 01.05.2020 Class : ix Session : 2 Subject : Eco App TOPIC: DEFINITION OF ECONOMICS


Academic Session 2020 - 2021


Academic Session 2020 - 2021 INTRODUCTION ‘Economics’ has been derived from a greek word called ‘oikos’ means’ household ‘and ‘nomos’ means ‘manager.’It means managing the household with a limlted resource. It is true for the society as well. The society also faces the problem of satisfying his unlimited wants with limited resources. All resources at our disposal is scarce .Time is scarce. All natural resources are also scarce so we need to use our resources wisely and we need to conserve and preserve our resources for future use. Economics was a part of social science but Economists tried to give an individual status in the society. It is the hardwork of many Economist who tried their best to make it a separate subject of study with unique charecteristics. ECONOMICS IS DEFINED AS ‘THE SOCIAL SCIENCE WHICH STUDIES ECONOMIC ACTIVITIES’. THE IMPORTANT DEFINITIONS ARE 1. WEALTH ORIENTED DEFINITION(ADAM SMITH) 2. WELFARE DEFINITION ( MARSHALL) 3. SCARCITY DEFINITION( ROBBINS) 4. GROWTH DEFINITION (SAMUELSON) We will discuss the first two definitions today . 1. WEALTH 2 . WELFARE. EXPLANATION WEALTH DEFINITION Adam Smith in his book’nature and causes of nations wealth’defined Economics Asa ‘Science of wealth’according to him wealth is everything. Acquiring of wealth Was everything according to him.Wealth can make a country happy.It was the be all And end all of all economic activities. MAIN FEATURES OF ADAM SMITH’S DEFINITION\ 1.Study of wealth -To increase the wealth production of material goods is important. 2.Study of material goods only-the goods which are scarce and useful like table,chair ,book,pen etc. 3. Economic man-A person who always thinks of his own interest or a selfish man. CRITICISMS OF ADAM SMITH’S DEFINITION Carlyle, Ruskin were of the opinion that it is a dismal science. It only explained how to be rich. 1.Too much stress on wealth-AdamSmith gave toomuch importance to wealth rather than the man. Man was given a secondary importance.His welfare was not given anyimportance.


Academic Session 2020 - 2021 2.Only material good-He laid more stress on material goods and did not consider the non material goods which are important for life but has no money value.eg air,sunlight. 3. Economic man- a man who is concerned about his self interest. He did not lay any importance to man who owns the wealth.Wealth in itself does not have any importance untiland unless it comes in the hands of man.

Adam smith’s definition-Economics is a science of wealth.

MARSHALL’S WELFARE DEFINITION

Marshall’sdefinition-It is the study of how man earns his income and how he uses it.

EXPLANATION Marshallgave more importance to man and his welfare. According to him it is man who uses his wealth for his welfare. Man is more important than his wealth. He gave more importance to man than his wealth. Wealth is just a means to attain satisfaction . FEATURE OF MARSHALL’S DEFINITION 1. Study of mankind -Marshall emphasizes the role of man in earning wealth and using it. 2. Study of ordinary business of life-he emphasizes on ordinary man working hard to attain satisfaction. 3. Study of material welfare- it studies all the welfare which is material.(which has money value).It lays no emphasis to non material goods.. CRITICISMS OF MARSHALL’S DEFINITION 1.Non material goods ignored-He completely material welfare ignored the non. Man is affected not only by the material welfare but also by non material goods and its welfare.There are manyservices which also provide welfare. 2.Welfare cannot be measured-Welfare is a feeling of well being which cannot be measured with the measuring rod of money. 3. Relation between means and ends ignored-Robbins critisised both the definition saying that the the relation between means(money or resourses)and ends(satisfaction) has not been given importance.and the scarcity of means. complelely ignored . 4 Nonmaterial goods also important- non material goods also generate economic activity Because many goods though not useful but have utility and are produced.eg wine,opium. 1.SHORT ANSWERS QUESTIONS


Academic Session 2020 - 2021 1. What is wealth?Give an example. 2.What are material goods. Give an example. 3. Explain economic activity. 4. Expain production and consumption with proper examples. 2. Write short notes (example a must) 1. Economic man 2. Welfare 3.non material goods. 4.Scarcity. LONG ANSWER QUESTIONS 1. Differentiate between wealth and welfare definition.(make columns) 2. Criticisms of Welfare definition. NOTE ALL ASSIGNMENTS TO BE DONE NEATLY IN THE FAIR COPY IF NOT PURCHASED KINDLY DO IT IN THE ROUGH COPY NEATLY. =================================================================

bishop westcottgirls’ school, namkom study material...

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