Numerous authors of the early days defined economics as “a science of wealth”. Adam Smith typically called the daddy of contemporary economics, defined economics as “A query into the nature and reasons for wealth of nations.”.
These definitions were malfunctioning since they gave much importance to wealth. As wealth is not everything, it only leads to accomplish welfare of human. For that reason it is guy an which is the aim all of the financial activities.
CHARACTERISTICS OF DEFINITION:.
This meaning offered a new direction to the research of economics. Following are the important characteristics of definition.
1. A Social Science.
This Definition makes economics a social science. It is a topic that is interested in the people residing in society. According to Marshall, as the behavior of human beings is not exact same all the time for that reason concepts of economics can not be developed like the laws of sciences. Additional laws of economics are not as exact as the laws of natural sciences. For this factor it is a social science.
2. Research Of Man.
Economics is associated with guy; therefore it is living subject. It talks about financial problems and behavior of guy. According to Marshall it studies the habits of male In regular company of life.
3. Wealth As A Method Of Product Well Being.
According to Marshall, wealth is not the ultimate goal of human activities and therefore we do not study wealth, for the sake of wealth. Therefore according to this definition we study wealth as a source of attainment of product well-being.
4. Economics And Welfare.
This definition makes economics a well-being oriented subject. We are concerned just with those economic activities which do not promote material welfare of people are out of the scope of economics.
Marshal stresses upon the concept of “material requisite of well being”. Therefore according to this definition all economic activities fix around the acquisition and usage of material goods like food, clothes and so on since they enhance welfare of people. On the other hand non-material requisites of human life like education, entertainment are ignored.
6. Normative Outlook.
According to this meaning economics must take care of good and bad aspects of financial activities and for that reason involve itself in “exactly what must be and what must not be”. This is called normative aspect of economics.
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