Definitions & Conceptual Understanding Flashcards
What is the definition of economics as a social science?
Economics is the scientific study of human behavior related to the problem of scarcity.
Who defined economics as the study of “the wealth of nations”?
Adam Smith (1776) defined economics as an inquiry into the nature and causes of the wealth of nations.
How did J.B. Say define economics?
J.B. Say defined economics as the science of production, distribution, and consumption of wealth.
What is the main criticism of Lionel Robbins’ definition of economics?
Robbins’ definition was criticized for being overly broad, failing to focus on the analysis of markets.
How did John Stuart Mill define economics?
John Stuart Mill defined economics as the science that traces the laws of societal phenomena related to wealth production.
What is the key feature of Alfred Marshall’s definition of economics?
Marshall emphasized economics as the study of man in the ordinary business of life, exploring income and its use.
What does the term ‘Political Economy’ originally refer to?
‘Political Economy’ originally referred to the study of public administration of a nation’s affairs, derived from French mercantilist use.
How is economics a science of scarcity?
Economics is a science of scarcity because it studies how society manages limited resources to satisfy infinite wants.
What does ‘positive economics’ focus on?
Positive economics focuses on the objective analysis of economic phenomena without making value judgments.
What is the relationship between economic history and history of economic thought? Economic history studies the economic development of a nation, while history of economic thought focuses on the evolution of economic ideas and theories.
