Introduction to Economics and Business
- Student: Hello Master. Yes, I know I will now! In some of the next module you will lecture me about ‘Microeconomics’!
And I also know that “Macroeconomics is the study of how the economy in general” because you lecture me on one before you told me earlier, “Microeconomics economic activity associated with individual markets and companies.”.
- Teacher:. Good for you. I see that you remember my previous lecture about the economy very well.
Nature and Scope of Economics
Many authors have defined the early days of economics as “the science of wealth.” Adam Smith is often called the father of modern economics, economics is defined as “Study on the Nature and Causes of the Wealth of Nations.”
These definitions were flawed because they give much importance to wealth. As wealth is not everything, but only lead to the achievement of human welfare. Therefore, a person who is the goal of all economic activity.
Prof. Dr. Alfred Marshall was the first economist to give a logical definition of the economy. He defines economics as: “The study of mankind in the ordinary business of life is to learn the part of individual and social action, which is closely related to the achievement and the use of the material terms”
Tags: alfred marshall, definition of social science, economic welfare, father of modern economics, human welfare, laws of science, logical definition, material prosperity, nature and scope of economics, scope of economics