Test- what is economics
Adam Smith’s Wealth definition:
According to Adam Smith, Economics is known as the science of wealth and “an inquiry into the nature and reasons of the wealth of the nations”. This characterization concentrated only on material aspects of the economy than the non-wealth aspects. It also failed to confer about the scarce resources and it’s utilization.
Alfred Marshall’s Welfare definition:
Marshall define Economics more closed to human aspects. In Marshall’s words, “Political Economy or Economics is a study of mankind in the normal or usual business of life. It examines that part of individual and social action which is most closely connected with the attainment and with the use of material requisites of well-being”.This description of economics covered human aspects but only in the way of material human aspects. It neglected the non-material aspects of welfare and scarcity of resources as done by Adam smith.
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