What is Economics?

It is a common perception that Economics is something about money or related to money. Some peoples think Economics and Finance are the same things and both words can be used interchangeably. Different authors have given different definitions of Economics Adam Smith, Marshall and Lionell Robbins definition are common.

According to Adam Smith:

"Economics is a science of wealth"

At that when presented his definition of Economics British society was religious and Adam Smith definition was not accepted by British Society.

So after Adam Smith, Marshall presented another definition of Economics

According to Marshall

"Economics is the study of mankind in the ordinary. It examined that part of individual action which is most closely connected and attainment of the material requisite of well being".

So Marshall Definition was about Material Welfare.

So after Marshall Robbin gave his definition so the definition of Robbins is the following:

  : Economics is the science which studies human behaviour as a relationship between ends and scarce means which have alternative uses".

 So the most acceptable definition of Economics is given by Lionell Robbins. Economics is considered as the science of scarcity.

Robbins Economics definition based on the following:

• Human Wants are unlimited.
• Means are scarce.
• Means have alternative uses.
• Ends vary in Importance

 The world in which we are living has limited resources but human wants are unlimited. Everyone has unlimited wants but anyone cannot satisfy all of the his\her wants with resources Then Economics came to satisfy unlimited want with limited resources. There is no need to satisfy every want because every want is no need.