Sunday, March 4, 2012

What is Economics? Adam Smith's Definition of Economics. Alfred Marshall's Economics

What is Economics? Explain the main features of Adam Smith’s definition of Economics.
Economics is the social science that studies the production, distribution and consumption of goods and services. The term economics comes from the Greek for “oikos” means house and “nomos” means custom or law, hence the term economics means “rules or laws o household”.
A definition that captures much of modern economics is that of Lionel Robbins in 1932 essay which states as “the science which studies human behaviour as a relationship between ends and scare means which have alternative uses.”
According to Alfred Marshall “Economics is the study of people in the ordinary business of life”. In short economics includes the study of labour, land and investment of money, income and production and taxes and government expenditures. Economist seeks to measure well-being to learn how well-being may increase overtime and to evaluate the well-being of the rich and the poor.

Adam Smith’s Definition of Economics:
Adam Smith wrote a book in 1776 whose title was “Wealth of Nations”. In his book he discussed the word ‘wealth’ through its four aspects: production of wealth, exchange of wealth, distribution of wealth and consumption of wealth. Therefore it can be said according to Adam Smith: “Economics is a science of wealth”. Wealth means goods and services transacted with the help of money. Let’s discuss four aspects of wealth; first one is production of wealth it shows as to how goods and services are produced. Goods and services are produced by the combination of four factors of production i.e. land, labour, capital and organization. Second aspect is exchange of wealth there are many procedures of goods and services in a society. Every procedure produces goods and services more than his personal requirement. The exchange of wealth enables everyone in the society to satisfy his multiple wants. Third aspect is distribution of wealth, which means the distribution of goods and services among different sections or individuals of a society. As known by explanation of exchange of wealth that procedures of goods and services exchange the surplus wealth with each other through out the year. The last and forth aspect is consumption of wealth that is using up the utility of goods and services for the satisfaction of wants is called the consumption of wealth.

According to Adam Smith “Economics was concerned with, An Enquiry into the Nature and Causes of Wealth of Nations.” As per definition of Adam Smith a key position was assigned to wealth in the study of Economics. The first person who introduced “Economics” as a subject was Adam Smith (1723-1790). He wrote the first book in economics entitled the “wealth of nation” in 1976. In this book he considered economics as a subject in which we study production of wealth, distribution of wealth, consumption of wealth and exchange of wealth. Production of wealth means the production of goods and services by combining four factors of production 1) Land: It is the natural resources such as Sea, Minerals, Live Stock and forest. 2) Labour: It is the mental or physical work, which is done for the sake of reward. 3) Capital: It means man made resources which help to produce goods and services. 4) Organization: It is the act of combing four factors of production to produce goods and services for the sake of profit. The production of wealth means production of goods and services. After the completion of production process this wealth is distributed among the four factors of production for their performance. Rent is given to land, wages to labour, and interest to capital and profit to organization. When people get their share from the production, they use it to satisfy their wants. They spent their income to purchase of goods and services. The surplus goods and services are exchanged with other surplus goods and services for the satisfaction of wants.


55 Responses to “What is Economics? Adam Smith's Definition of Economics. Alfred Marshall's Economics”

work4pak said...
May 3, 2012 at 10:16 PM

hello faizan,
I like your work can we chat on skype(ahsanali6553).
That is my sky id.
my number is 03126553551.
I want to share information with you

Mark Lyndon Brillantes said...
June 14, 2012 at 3:17 AM

I got useful information from you. :)

Work at Home Online Jobs >>>

Monir Hossain said...
July 21, 2012 at 2:07 AM

This site are so much useful for us.........................

Anonymous said...
August 20, 2012 at 6:15 AM

Thanks for the info... REally useful.

Anonymous said...
August 21, 2012 at 9:20 PM

He wrote the book Welth of nation in 1776 nd not in 1976.

r k o said...
September 2, 2012 at 3:49 AM

supper...... the book year is 1776..
super work

Rizwan said...
October 11, 2012 at 1:44 AM

Sahy Sher wa Yar

kaabisheikh said...
October 21, 2012 at 3:01 AM

thnx boos how done this work thnxx

Almas khan said...
October 22, 2012 at 8:38 PM

The blog was absolutely fantastic! Lots of great information

online jobs
IT jobs
online jobs data entry

Ummah said...
February 2, 2013 at 11:24 AM

thank u so much for wonderful post. its very useful to me. if u have more notes like this regarding economics please let me know.

Faizan Khan said...
March 4, 2013 at 12:38 PM

what was the drawback of adam definition? why it was rejected?

Anonymous said...
March 5, 2013 at 9:38 PM

Dear can someone elaborate about Robbin..

Anonymous said...
March 20, 2013 at 3:19 AM

these defination and concepts are easy and perfect.......................

gwemy said...
April 2, 2013 at 12:27 AM

tnx alot

Anonymous said...
May 5, 2013 at 1:38 AM


chliche nalata said...
May 20, 2013 at 7:26 AM

tnx for the info. ive learn a lot

Anonymous said...
June 12, 2013 at 11:16 AM

Tanks a lot

Anonymous said...
June 15, 2013 at 5:08 AM

bundle of thanks please give me more lesson

Farzand Ali said...
July 24, 2013 at 12:38 PM

great work bro n thanx alot.

sahadev panda said...
July 31, 2013 at 10:07 AM

it is the best definition of economics

kessy ibrahim said...
August 31, 2013 at 2:07 AM

Thanks ur information it helpful

Faizel Van Der Merwe said...
September 9, 2013 at 2:21 AM


Anonymous said...
September 24, 2013 at 9:50 PM

So nice information i like yor work and iam appreciating you lot of thanks fruitful information

karimgorchani said...
September 24, 2013 at 9:53 PM

please give us more information

Abia Phil said...
October 28, 2013 at 9:49 PM

you just saved my presentation......big THANKYOU

Lateefat said...
November 12, 2013 at 8:03 PM

Tnks a lot its reli help me so much,if u av any oda informatn abt economics,kindly post it

Anonymous said...
November 15, 2013 at 7:49 AM

thank you very much you have done great job

Umair Habib said...
November 19, 2013 at 9:37 PM

Economics or a political economics is "an inquiry' in to the nature and cause of wealth of nation

political economics is a science that treat the nature the production and the distribution of wealth

subhan ullah said...
November 26, 2013 at 9:10 AM

its a so good site

sarwan kumar said...
February 17, 2014 at 6:02 AM

economic only distribution wealth and production wealth

Anonymous said...
April 6, 2014 at 8:09 AM

Thanx for d info

Anonymous said...
May 6, 2014 at 8:02 AM

thnx a alot cus this information is really helpful

Sadam Hussain said...
May 11, 2014 at 9:26 PM

Nice Presentation

Anonymous said...
May 12, 2014 at 3:07 PM

How i wish i saw u. This is powerful

Anonymous said...
October 3, 2014 at 6:36 AM

its a fair note

Anonymous said...
October 8, 2014 at 10:13 PM

I like it

Anonymous said...
October 15, 2014 at 3:44 AM

a very talented job keep it up and keep on spreading knowledge

shahzad muhammed zai said...
November 27, 2014 at 11:36 PM

I like it it's very important for students

Anonymous said...
December 5, 2014 at 1:41 AM

Worest information ever

Anonymous said...
January 13, 2015 at 1:02 PM

Thanks usefull info ,i like it <3

karthik G said...
August 18, 2015 at 9:38 PM

Thanks for the info

Anonymous said...
September 18, 2015 at 10:07 AM

Its iformative tnx bt the year in books is wldon keep going

Anonymous said...
September 18, 2015 at 10:11 AM

Can u explain about ur stupid conment??????????(?that was silly 1

Sundus Mudassir said...
October 1, 2015 at 5:53 AM

This is the same as in my book

Anonymous said...
January 16, 2016 at 9:47 PM

Yes i have good material of economics if you want economics notes then contact me by following number 03433379546 iam student of economics

Anonymous said...
January 16, 2016 at 9:51 PM

I have written good book of economics which contain excellent information if you want soft copy of my book then contact me in the following number 03433378546 the book name is utilization of money

ali raza said...
February 24, 2016 at 9:11 AM

What is the correct word in urdu... aadam dmith or adem smith

ali raza said...
February 24, 2016 at 9:12 AM

What is the correct word in urdu... aadam dmith or adem smith

Atthar Ramzan said...
July 18, 2016 at 3:53 AM

adam smith

Azeem khan said...
April 11, 2017 at 10:31 AM

Enter your reply...I need englsih essay anyone have that then plz e.mail it to me. on the topic if knowledge is power and coeducation an terrorism

farhan khursheed said...
April 27, 2017 at 11:05 PM

pro bloggerism
pro bloggerism
pro bloggerism
pro bloggerism
pro bloggerism
pro bloggerism
pro bloggerism

Anonymous said...
May 20, 2017 at 11:06 PM

hey dummy that bottom picture is thomas jefferson not adam smith lol

Unknown said...
November 22, 2017 at 7:36 AM

Must visit youtube channel learn with sir

learn and apply knowledge By Kawish said...
November 22, 2017 at 7:36 AM

Must visit youtube channel learn with sir kawish

SA Car said...
March 6, 2018 at 4:36 AM

A built-up pioneer in the ground transportation advertises, Rent a Car Rawalpindi offers extraordinary alternatives with present-day innovation in auto rental answers for experts and corporate people. Top quality Rawalpindi Rent a Car particularly altered to coordinate your correct organization necessities with an expert booking focus offering 'only a summon'.

Post a Comment

© 2013 Notes for Pakistan. All rights reserved.
Designed by SpicyTricks