Q1. Define economics as clearly as you can. Is it a Dismal Science?

A1. Economics is a science that studies how to manage the limited means and unlimited wants. It helps people to choose between ends to derive the maximum satisfaction. It also studies, how the levels of income and employment, in a country can be increased and also what causes fluctuations in them. The study of economics promotes economic stability. With respect to underdeveloped countries, Economics is concerns itself with the study of Economic Growth.

The definitions in Economics were taken in a very narrow sense. Like when Adam Smith defined economics, then economists like Carlyle and Ruskin, said that his definition laid too much emphasis on Wealth. As if every activity done by man is to create wealth only. Thus, Economics came to be regarded as a ‘Dismal Science’. Later, Marshall came up with his definition of Economics and it was he who said that it is subject that studies man and wealth is secondary. It should no longer be considered as a science of selfishness but a study that brings about social welfare. This is how Economics gained great social acceptance.

 

Q2. “Economics is the science of wealth”. Do you agree with the definition? Give reasons for your answer.

A2. Adam Smith in his book ‘Wealth of Nations’, defined Economics as a ‘Science that treats of wealth’. It is not considered a correct view. There is too much attention given to wealth, as if wealth is everything. Little importance is given to man, for whom the wealth is created. It is because of this that Economics came to be regarded as a ‘Dismal Science’. It was later on , when Marshall came up with his definition where he emphasized that Economics is the study of man. Wealth is the end which