Detailed_Lecture_Definitions_of_Economics.pptx

here we have introduced the concepts of economics and also we have defined in several ways

1. Critical Examination of the Definitions of Economics Adam Smith | Alfred Marshall | Lionel Robbins By: [ I h s a n u l l a h ] Course: [ f u n d a mental s o f E c o nomic s ] Date: [ 2 1 - 1 - 2 2 5 ]

2. Learning Objectives - Explain and compare classical and modern definitions of economics. - Understand the evolution of economic thought from wealth to welfare to scarcity. - Critically evaluate the strengths and weaknesses of each definition.

3. Introduction The definition of economics has evolved through time. • Early economists: Focus on wealth and production. • Later economists: Human welfare and social well-being. • Modern economists: Scarcity, choice, and allocation of resources. Major contributors: - Adam Smith (1776): Wealth Definition - Alfred Marshall (1890): Welfare Definition - Lionel Robbins (1932): Scarcity Definition

4. Adam Smith’s Definition (Wealth Definition) Book: 'An Inquiry into the Nature and Causes of the Wealth of Nations' (1776) Definition: 'Economics is the science of wealth.' Main Points: - Focus on production, distribution, and accumulation of wealth. - Emphasis on division of labour and free market mechanism. - Humans motivated by self-interest. - Advocated laissez-faire and minimal state interference.

5. Strengths of Adam Smith’s View - Foundation of classical economics. - Introduced 'invisible hand' theory — self-interest benefits society. - Defined economics as a separate discipline. - Emphasis on productivity influenced industrial development.

6. Criticism of Adam Smith’s Definition - Materialistic — focused only on wealth, ignored welfare. - Neglects social and moral aspects of human behavior. - Ignores non-material goods like education and health. - Narrow and outdated in the modern context.

7. Alfred Marshall’s Definition (Welfare Definition) Book: 'Principles of Economics' (1890) Definition: 'Economics is a study of mankind in the ordinary business of life; it examines that part of individual and social action which is most closely connected with the attainment and use of the material requisites of well-being.' Main Points: - Shifted focus from wealth to human welfare. - Economics as a social science. - Wealth is a means to welfare, not an end. - Concerned with material welfare and living standards.

8. Strengths of Marshall’s Definition - Human-centered approach to economics. - Combined theoretical and practical insights. - Introduced time period analysis (short run and long run). - Included ethics and welfare in economic thought.

9. Criticism of Marshall’s Definition - Limited to material welfare; excludes non-material satisfaction. - Welfare is subjective and difficult to measure. - Neglects scarcity and choice. - Focused mainly on microeconomics, ignored macroeconomic factors.

10. Lionel Robbins’ Definition (Scarcity Definition) Book: 'An Essay on the Nature and Significance of Economic Science' (1932) Definition: 'Economics is the science which studies human behavior as a relationship between ends and scarce means which have alternative uses.' Main Points: - Focus on scarcity and choice. - Economics deals with allocation of scarce resources. - Applies to both material and non-material wants. - Positive science, not normative. - Universal applicability.

11. Strengths of Robbins’ Definition - Scientific and analytical. - Universal in application to all human behavior under scarcity. - Explains rational choice and opportunity cost. - Foundation of modern microeconomics.

12. Criticism of Robbins’ Definition - Ignores welfare — economics becomes value-free. - Ethical neutrality limits practical policy application. - Focus on individual decision-making, ignores society-wide issues. - Overemphasis on scarcity, ignores abundance-based economies.

13. Comparative Analysis Aspect | Adam Smith | Alfred Marshall | Lionel Robbins --------|-------------|----------------|---------------- Focus | Wealth | Human Welfare | Scarcity & Choice Nature | Materialistic | Humanitarian | Analytical Approach | Positive | Normative | Positive Scope | Narrow | Moderate | Broad Limitation | Ignores welfare | Ignores scarcity | Ignores welfare

14. Critical Evaluation - Economics evolved from wealth → welfare → scarcity. - Smith: Foundation of production and growth. - Marshall: Focused on human welfare. - Robbins: Gave economics scientific precision. - Modern economics integrates all three — wealth, welfare, and efficient resource allocation.

15. Conclusion - No single definition fully captures economics. - Each reflects economic thinking of its time. - Combined, they transformed economics into a dynamic social science. - Modern economics balances welfare and efficiency in decision-making.