Economics is a social science wherein we study the areas of production, distribution, consumption, etc. of goods and services. It is also said that economics is a science that studies patterns of human behavior. In this, we study how individuals, organizations, and nations use their limited resources to achieve maximum benefits.
Economics is divided into two parts, one is microeconomics and the other is macroeconomics. Microeconomics examines the market behavior of individual consumers and organizations, while macroeconomics analyzes the economy as a whole.
Similarly, another part of economics is managerial economics. It relates to the economic means that are relevant to business decision-making. Not only this, managerial economics enables managers to determine the impact of various economic events on the performance of an organization.
The Meaning And Definition Of Arthashastra
Defining economics has always been a topic of discussion. Different economists have held different views & opinions about economics. Economics is also called the study of wealth. As per some scholars, economics studies unemployment, inflation, and other such issues, which impact human development. There is no uniformity in the definition of economics. To explain its concept, economics is defined from four different perspectives. Let’s get to know them:
From The Perspective Of Money
This meaning of economics is directly related to money. Adam Smith is considered the father of modern economics and according to him, economics is the science of money. He has written a book, which states that the main objective of economic activities is to get more and more money. Thus, economics is related to the creation of wealth.
From The Perspective Of Welfare
The economist Alfred Marshall has associated the word economics with the welfare of the people. In his book, he has described economics as the science of welfare. However, the definition counts only materialistic welfare and neglects non-materialistic welfare.
From The Perspective Of Development
Paul Samuelson gave a development-oriented definition of economics.
From The Perspective Of Scarcity
Lionel Robbins, in one of his books, gas defined economics as a science of removing scarcity or choice.
The History Of Economics
Besides Kautilya’s composition on Economics, there are also other works on Economics written by other scholars. However, Kautilya’s work is the most structured and systematic work on Economics in ancient India.
The Development Of Economics
The development of economics in its present form took place in Western countries, especially in England. Adam Smith is considered the father of modern economics. It is believed here economics is the science that explores how limited resources can be allocated across society in a proper & effective manner.
Well, Macroeconomics is related to money. In a way, it is the most difficult thing in economics. In a way, to understand macroeconomics, one needs to recognize that what is true for a person cannot be true for society.
The study of Industrial Economics shows how our industrial economy functions. It can also be understood that the industrial economy is that component of the national economy that caters to industrial goods and services. As for industrial statistics, it provides systematic information about the industrial activities going on in the economy.
Educational Economics refers to the study of economics as an academic subject. If we talk about the economic issues related to education, it includes demand for education, financial management, school education, etc. It can be said that educational economics is that branch of economic theory exploration that establishes a relationship between education and economics.
Economics is the study of economic theories in the solution to the practical problems of business. It is the branch of economics, which is associated with business management. It can also be called a business branch of general economics.
Economics has impacted every human all through the history, in some way or the other. So, Arthashastra presents a good picture of how the ancients saw and took economics. Indeed, a very nice peep into the economic wisdom of the ancients.