SCOPE OF ECONOMICS
The Scope of economics refers to the extent to
which it deals with the economics life of the people. This broad statement
covers all that has so far been written in the subject of economics. Hence, it
is not possible to cover all this in a few lines. There are three general
aspects of the subject that we must cover.
(i) Subject matter of economics.
(ii) Individual or aggregate
economics as a social science.
(iii) The question whether
economics is a science or an art.
(i) SUBJECT MATTER OF ECONOMICS: We know there is a
difference of opinion among economists regarding the subject matter of
economics. Adam smith was concerned with the nature and causes of wealth of
nation. Marshall introduced the concept of welfare in the study of economics.
“so Marshall’s definition clearly laid emphasis on man and attached secondary
importance to wealth”. Robbins focused on multiplicity of ends to be satisfied
by scare means which have e alternative uses. thus, in-spite of the difference
of opinions, Economics is basically a science of wealth because it is only
wealth which is either used to promote welfare or used to satisfy human wants.
There is no concept of economics without wealth.
Since Robbins definition of economics
is the most accepted definition of the subject in the world these days the
subject matter of economics will be discussed with reference to his definition.
We already know that human
wants are unlimited. These wants force us to do some Economics activities in
the form of land, labor, capital and
entrepreneurship, as a result of
these activities, goods and services are produced on one hand and rewards in
the form of rent, interest, wages and profits are distributed among the factors
of production on the other hand.
These
reward or incomes are resources of the people. they convert these (limited)
monetary into real resources by buying goods and services certainly in an
alternative fashion. These goods and services are gushed to satisfy wants. This
cycles goes on and on. This truly represents the economic life of the people.
Hence, it is the core of economics or, in other words, the subject matter of
economics.
(ii) ECONOMICS AS A SOCIAL SCIENCE: From the
discussion on the definition and the scope of economics so far we can easily
realize that economics studies the aggregate economic behavior of the society,
hence, it is a social science. In this subject, even the individual economics
behavior is studies as part of the general economics tendencies of the people.
For example, we take the demand and supply of a product. These are the
individual aspects of an economy. These aspects necessarily represent the
general behavior. So in economics we study the economic activities of a society
and therefore economics is a social science.
(iii) IS ECONOMICS A SCINCE AN ART? Now comes
the important question of whether economics is a science or an art? Before we
go to take up the question, we will first of all define what is a science and
what is an art?
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