According to Adam Smith "Economics was concerned with, An Enquiry into the Nature and Causes of Wealth of Nations."
As per definition of Adam Smith a key position was assigned to wealth in the study of Economics.
The first person who introduced "Economics" as a subject was Adam Smith (1723-1790). He wrote the first book in economics entitled the "wealth of nation" in 1976. In this book he considered economics as a subject in which we study production of wealth, distribution of wealth, consumption of wealth and exchange of wealth.
Production of wealth means the production of goods and services by combining four factors of production 1). Land: It is the natural resources such as Sea, Minerals, Live Stock and forest. 2). Labor: It is the mental or physical work, which is done for the sake of reward. 3). Capital: It means man made resources which help to produce goods and services. 4) Organization: It is the act of combing four factors of production to produce goods and services for the sake of profit. The production of wealth means production of goods and services.
After the completion of production process this wealth is distributed among the four factors of production for their performance. Rent is given to land, wages to labor, and interest to capital and profit to organization. When people get their share from the production, they use it to satisfy their wants. They spent their income to purchase of goods and services. The surplus goods and services are exchanged with other surplus goods and services for the satisfaction of wants.
Adam smith wrote a book in 1776 whose title was "Wealth of Nations". In his book he discussed the word 'wealth' through its four aspects: Production of wealth, exchange of wealth, distribution of wealth and consumption of wealth. There fore it can be said according to Adam Smith: "Economics is a science of wealth". Wealth means goods and services transacted with the help of money. Lets discuss four aspects of wealth; first one is production of wealth it shows as to how goods and services are produced. Goods and services are produced by the combination of four factors of production i.e. Land, labour, capital and organization. Second aspect is exchange of wealth there are many procedures of goods and services in a society. Every procedure produces goods and services more than his personal requirement. The exchange of wealth enables everyone in the society to satisfy his multiple wants. Third aspect is distribution of wealth, which means the distribution of goods and services among different sections or individuals of a society. As known by explanation of exchange of wealth that procedures of goods and services exchange the surplus wealth with each other through out the year. The last and forth aspect is consumption of wealth that is using up the utility of goods and services for the satisfaction of wants is called the consumption of wealth.
The very title of Adam Smith's classic " An Enquiry into the Nature and Causes of the Wealth of the Nations" rendered economics as a study concerned with wealth or economic goods. The need for satisfying various wants with the help of these goods (consumption of wealth) necessitates collaborative efforts on the parts land owner, labourer, capital owner and organiser to produce them(production of wealth) and share them as per their contribution to the collaborative efforts ( distribution of wealth). Since people do not necessarily have all they are able to afford, they exchange the goods amongst themselves either directly or through a common medium(exchange of wealth) to satisfy their wants. Thus, according to Adam Smith, economics can be defined as a study that deals with production, distribution, exchange and consumption of wealth.
According to adam smith economics is the study of wealth economy.he wrote a book "WEALTH OF NATIONS'' in 1776.he was the person who defined economics as a subject.
According to Adam smith "Economics is an enquiry of nature and causes of wealth of nation". He also says Economics is the science of wealth.science provides ways and means of getting plentiful revenue to the state as well as more property to the people.he says that earning and spending of money denotes wealth
Smith’s definition of economics was based on the concept that later came to be known as comparative advantage. He talks about economics in the perspective of political institutions and government. He said that artificially maintaining a trade surplus does not increase wealth instead he was a proponent of free trade. Free trade opened up new markets for surplus goods and also gave the opportunity to be able to get goods from countries that manufacture at a lower cost. He said that nations should produce what they are good at and import the things that they can not manufacture efficiently but also believed that the role of the government is very important. He said governments should protect inventions through copyrights. He believed that economic development was stimulated in an environment of free competition like the laws of nature. His study of economics revolved around the importance and role of government, institutions and politics and later came to be known as political economics.
Microeconomics studies how individuals and business firms allocate their resources and how they make their decisions. It is concerned with small scale activities and how these decisions of individuals and firms affect the overall situation of demand and supply in the market. Its aim is to establish a price at which sellers are willing to sell and buyers are willing and able to buy and how limited resources will be allocated between different options or alternatives available.
Adam Smith was a professor of camerage university.in 1776 Adam Smith discover a book" the Wealth of Nations" and become a father of economics . In this book according to him wealth means "Goods and Services" and dervied a definition that is sciences of wealth. The main points of definition are as fellow.
Production of wealth.
Consumption of wealth.
Exchange of wealth.
Distribution of wealth.
Adam smith define economics as an inquiry into nature and causes of wealth of nations;therefore it can be said according to adam smith that economics is a science of wealth and wealth means goods and services.
To be very precised " economics is an inquiry of nature and causes of wealth of nation " he aso stated that "economics is the science of wealth" here wealth means goods and services of nation
Our teacher said
willing to purchase
ability to purchase
Adam Smith(1723-1790) a citizen of scotland is popularly known as the father of economics as well as the leader of classsical economics.He gave birth to the systematic study of economics and seperated it from the political economic.
He published his famous book "An inquiry into the nature and causes of wealth of nations".In 1776 A.D. In his book,he defined economics as economics is the study of activities of wealth.The definitions has the following main points.
1) siginificance of wealth
2) role of economic-man
3) priority given in the definition
4) source of wealth
He views economics as a study of national wealth
Economic as science which enquires into the nature and causes the wealth of nation
Mention and explain the charateristics of economics.
Economics is an acquisition of wealth
it is the science of wealth
wealth in the ordinary sense means "riches or money"
Yeah adam smith is father of eco .
The study of wealth is called economist.
Adam Smith was the first man who define economics . According to him economic can be define as "economic is concern with the nation wealth " . Here wealth means goods and services. It has four aspects 1. Production of wealth 2. Exchange of wealth 3. Distribution of wealth 4. Consumption of wealth
Micro & macro economic means house hold management.
Economics is positive as well as normative science