Economics: The Nature And Its Scope

Economics: The Nature And Its Scope

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It is defined as a probe on the nature and cause of wealth. This is the definition of Adam Smith, the father of economics. The definition is not totally right at all because it supposes that man only has wealth as its only source of happiness. When in fact, wealth is only one of the ways that man can use to satisfy himself. Economics therefore is about man, not about wealth.

There is an option to present a more correct definition of economics, and this was presented by Professor Alex Marshall and it say "a study of mankind in ordinary business of life, it examines that part of the individual and social actions which is closely related with attainment and use of material requisites."

There are different points in the definition. First, it insists that it is a social science and the principles of economics should not be likened with scientific laws. This is due to the fact that human behavior has different tendencies. The second point is that it is a about a study of man. It is analyzing the economic problem vis--vis with his behavior while conducting daily activities.

It argued that material thing satisfaction is the ultimate satisfaction of man not wealth itself. Wealth only provides man the resources to achieve happiness and satisfaction. Through wealth, man buys material objects and uses it to serve human welfare. Thus, economics is about what is wrong and what is right.

It is still not acceptable as an appropriate definition on economics. This definition of Marshall has its own share of critics.

It is not right to assume that man is only for the creation of material things to satisfy himself. It did not consider that man can also be happy without the pursuit of wealth to buy material things that will make him happy. This can be explained as the definition itself is not clear about what makes up happiness and satisfaction among men. Different people have different satisfaction therefore have different sources of satisfaction.

In addition, the critics further argued that economics has no business in determining what is good and what is not with respect to the welfare of men. The definition has restricted the nature and scope of economics to concepts that deals with materialism and its relationship with man

Going over the definition and balancing the key elements and weaknesses, it is safe to conclude that Professor Marshall's definition of economics is still wanting. It is still not an acceptable idea of the nature and scope of economics


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