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Origin of Economics
The termeconomicscomes from the
Ancient Greek (oikonomia,
"management of a household,
administration") from (oikos,
"house") + (nomos, "custom"
or "law"), hence "rules of the
house(hold).
ADAM SMITH
What is Economics?
Definitions of Economics as given by different writers:
A social science concerned with using scarce resources to
obtain the maximum satisfaction of the unlimited material
wants of the society (Bingham et al)
The science that deals with the activities of man in obtaining
wealth for the satisfaction of his wants (Castillo)
The science that deals with the efficient use of scarce
resources in order to satisfy the needs and wants of the
people (Guzman)
Scientific study which deals with how individuals and society
generally make choices (Sicat)
An inquiry about the nature and causes of the wealth of
nations (Smith)
Introduction to Economics with Land Reform and
Economics as a Science
It is a science because it is a body of
systematic and organized knowledge
Economics is concerned with the
classification and logical
arrangement of economic
phenomena
Concepts of Economics
Wealth refers to any property and asset of a
person that have a useful value such as real estate,
money, stocks and the likes
Product the creation of raw materials into finished
products to satisfy human wants
Exchange the process of trading goods and services
for money
Distribution deals with the allocation of the social or
national income among the different factors of
production
Consumption refers to the utilization of goods and
services by any individual to satisfy human wants
Introduction to Economics with Land Reform and
Division of Economics
Microeconomics the study of
economics which deals with the behavior
and activities of individuals in specific
units such as entrepreneurs, firms,
manufacturers as well as consumers
Macroeconomics the study of the entire
behavior of the economy and the factors
and forces, which cause depression,
inflation and recession.
Introduction to Economics with Land Reform and