Monday, October 24, 2011
Definition of Economics and its relation to other Social Science
- It is the proper allocation and efficient use of available resources for the maximum satisfaction of human wants.
- It is a social science
- Economic problems are not purely economic in nature. These are also caused by no economic factors which may be cultural, educational, social or political. To solve the problem we need reforms in almost every aspects.
- It uses scientific methods in gathering data, analyzing data and in making conclusions. Data are mostly obtained through observations and inter views. Conclusion are based on generalizations within the limits of certain specific assumptions.
- The concept of ceteris paribus means "other things being equal or constant".
- PLATO: idea of justice and division of labor
- Adam Smith's book Wealth of Nations was published in 1776.
- Smith as father of economics
- Ideas of Smith: Free competition would promote the welfare of the individual as well as that of society, invisible hand, laissez faire.
- Industrial Revolution in England.
- Karl Marx: Communist Manifesto, bourgeoisie,proletariat, class consciousness, withering away of the state.
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