Introduction of Economics

The word 'Economics' originated from Greek word 'aeconomics'. The meaning of the word is the science of household management. According to Greek philosopher Xenophon (431 B.C.) economics is the science of household management. Similarly, the Greek philosopher Aristotle has divided economics into two parts. One is 'economy proper economicus' and the other is the science of supply or 'chrematistic'. Ancient oriental economist Kautilya has taken economics as the science of nation management or the roling of a nation.

Medieval economists have taken economics as the science of wealth. After that mercantilism took over the economic sector. Mercantilists took wealth and foreign trade as the base of economics. During that period, nations of the world were after the wealth, they all had one motive, that is collection of wealth. They all had the same Slogan 'more gold, more wealth, more power'. Around the mid 18^th century a group of economists approached economics with different and new thoughts. This group is known as 'physiocratic school'. According to this school human satisfaction can be increased through natural law only. This school, emphasized in the development of agriculture sector.

Nowadays people study economics for many reasons. Some study it for making money, other may study it for the fear that people might treat them as ignorant if they do not have the knowledge of the laws of supply and demand. The foremost reason why people study economics relates to the use of scarce resources and time to derive maximum satisfaction. Economics teaches us how the scarce resources at our dispasal can be put to several alternative uses. Thus, it is a science of choice. Besides, the study of economics helps the proper allocation of resources for the maximum benefit of the individual as well as society, it is also concerned with the study of economic growth of underdeveloped economies and the theory of income and employment.

Definition of Economics

Economics is the most significant example of the social sciences by studying the philosophical problems that arise specifically within each of the social sciences. In many ways, it is the most developed of all the social sciences, and this may be the reason why some of the best-defined controversies in the philosophy of social science arise from within it. Question is about the philosophical foundations of economics touch on the philosophically central issues of rationality, choice and the nature of wants or desires and their connection with action. John Neville Keynes (1852), the father of John Maynard Keynes, rightly commented that political economy is said to have been suppressed with definitions. Adam Smith, the initial founder among the great founders of economics, lived and wrote towards the end of the scientific philosophical revolution. The definitions of Adam Smith, Alfred Marshall and Lionel Robbins are discussed as classical, neo-classical and modern definitions of economics.