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Definition of Economics

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

  1. Economics is the science of human behavior.
  2. Economics describes the production.
  3. It exchanges of good.
  4.  It fulfills the consumer needs.
  5. 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.