An economy consists of
the economic system of a country or other area, the labor, capital and land
resource, exchange, distribution and consumption of goods and services of that
area. The word Economics comes from the
ancient GREAK word (oikonomia) that
is comprised of composed of the two word okios
means house and normos means custom
or law. So, the etymological meaning of management of household.
L. ROBINS, 1920, teacher in the school of economics
in England, said that “Economics
is the science of human behavior as a relationship between ends and scarce
means which have alternative uses”.
According to Alfred Marshall “Economics is the study of mankind in the ordinary
business of life”
According to Fanuelson and Nordhaus “Economics is the study of those activities that
involve the production and exchange of goods.”
From the above the
definition my point of view is that
- Economics is the science of human behavior.
- Economics describes the production.
- It exchanges of good.
- It fulfills the consumer needs.
- It finds out the problems of consumers and finally makes the supplies.
So, economics is the
study of how societies use scarce resource to produce valuable
commodities and distribute them among different groups.