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Hamza

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26 views5 pages

Hamza

Uploaded by

balochhasham2002
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Name:

Ameer Hamza Hassan

Roll NO.:

AGRI51F22R006

Section:

Present to:

Dr Moula Bux Peerzado

1. Adam Smith (1723-1790)

"Economics is the science of wealth, which investigates the nature and causes of the wealth of nations."

— From "The Wealth of Nations" (1776)

1. Lionel Robbins (1898-1984)

"Economics is the science which studies human behavior as a relationship between ends and scarce
means which have alternative uses."

— From "An Essay on the Nature and Significance of Economic Science" (1932)

1. Alfred Marshall (1842-1924)

"Economics is a study of mankind in the ordinary 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 the material
requisites of wellbeing."

— From "Principles of Economics" (1890)

1. Paul Samuelson (1915-2009)


"Economics is the study of how societies use scarce resources to produce valuable commodities and
distribute them among different people."

— From "Economics" (1948)

Scope of Economics

The scope of economics is broad and encompasses multiple dimensions. It is generally divided
into two main branches:

1. Microeconomics
Microeconomics examines individual and business decision-making processes. Key
topics include:
o Demand and supply analysis
o Pricing of goods and services
o Production and cost theories
o Market structures (e.g., perfect competition, monopoly)
o Consumer behavior and utility
2. Macroeconomics
Macroeconomics focuses on the economy as a whole. Core topics include:
o National income and output
o Inflation, unemployment, and economic growth
o Fiscal and monetary policies
o International trade and finance
o Economic cycles
3. Normative vs. Positive Economics
o Positive Economics deals with objective analysis and facts, such as "What is
happening in the economy?"
o Normative Economics addresses subjective value judgments, such as "What
should the government do to reduce inequality?"
4. Applied Economics
Economics is applied to various fields, including:
o Agricultural economics
o Health economics
o Environmental economics
o Behavioral economics
o Development economics
Significance of Economics

Economics plays a crucial role in understanding and shaping societies. Its significance can be
outlined as follows:
1. Efficient Resource Allocation
Economics provides tools to allocate scarce resources effectively, ensuring optimal
production and distribution.
2. Policy Formulation
Governments use economic theories to design policies that address issues like poverty,
unemployment, inflation, and economic growth.
3. Business Decision-Making
Economics helps businesses make informed decisions about pricing, investment, and
production strategies.
4. Global Trade and Relations
Understanding economics is essential for navigating international trade, addressing global
financial crises, and managing exchange rates.
5. Improvement in Living Standards
By studying economics, societies can identify ways to enhance productivity and equitable
resource distribution, thereby improving living standards.
6. Understanding Market Mechanisms
Economics explains how markets operate, highlighting the dynamics of supply, demand,
and competition.
7. Predicting Future Trends
Economic models and forecasting techniques are vital for anticipating future challenges
and opportunities.

Conclusion
Economics is an indispensable discipline that addresses fundamental issues of scarcity, choice,
and resource allocation. Its scope spans individual, national, and global levels, making it relevant
to everyday life and policy-making. By understanding economics, individuals and societies can
make informed decisions to promote welfare and sustainable development.

References

1. Smith, A. (1776). The Wealth of Nations.


2. Robbins, L. (1932). An Essay on the Nature and Significance of Economic Science.
3. Samuelson, P. A., & Nordhaus, W. D. (2009). Economics.

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