Definition of Economics?

Definition of Economics?

The word Economics comes from the Greek word Oikonomia. – Oikos (means a household) + Nomos (means management). In a word, Economics is a study of how people use their limited resources to fulfill unlimited wants. According to –

Adam Smith (1723 -1790), the founder of economics, described it as a body of knowledge which relates to wealth. Accordingly to him if a nation has larger amount of wealth, it can help in achieving its betterment. He defined economics as: “The study of nature and causes of generating of wealth of a nation”.


  1. Robbins defined as-“Economics is the science which studies human behavior as a relationship between ends and scarce means which have alternative uses.” This definition base on three basic characteristics of human life: 1.Unlimited wants (ends) 2.Limited resources (scarce means) 3.Alternative uses of resources. Finally, we can say that Economics is that branch of science, which deals with production, consumption and distribution of wealth.

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