Questions and Answers
Which economist is known as the father of economics?
Economics is primarily focused on wealth accumulation and not on human welfare.
False
What does the Greek word 'Oikonomos' mean?
management of the household
Adam Smith defined economics as an inquiry into the nature and causes of the __________ of the nation.
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Match the following economists with their contributions:
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Which economist emphasized the significance of scarcity in the definition of economics?
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According to Paul Samuelson, economics only deals with the correlation between wealth and money.
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What aspect of human behavior does the definition of economics by Lionel Robbins focus on?
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___ is referred to as the study of mankind in the ordinary business of life.
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Match the economist with their definition of economics:
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Study Notes
Economics as a Social Science
- Economics analyzes relationships between individuals and societies, categorized as a social science alongside sociology and psychology.
- Described as the "queen of the social sciences" by economist Paul Samuelson for its comprehensive approach.
- Unique methodologies that help economists answer diverse questions about human behavior.
Definition of Economics
- The term 'economics' is derived from the ancient Greek word "oikonomia," signifying management of a household.
- Greek components:
- ‘Oikos’ meaning 'Home'
- ‘Nomos’ meaning 'Management'
- 'Oikonomos' refers to managing household income and expenses.
Wealth Definition
- Adam Smith, known as the father of economics, emphasized wealth creation in his work "The Wealth of Nations."
- Smith defined economics as exploring the nature and causes of national wealth.
- Birth: 1723, Death: July 17, 1790; advocated laissez-faire policies and contributed to GDP concepts.
Welfare Definition
- Alfred Marshall shifted focus from wealth to welfare in his book "Principles of Economics."
- Defined economics as the study of human activities closely related to material requirements for well-being.
- Key features of material welfare definitions:
- Material requisites of well-being.
- Focus on ordinary business of life concerning income generation and usage.
- Emphasized the role of man in wealth creation.
Scarcity Definition
- Lionel Robbins introduced the concept of scarcity as central to economics.
- Defined economics as studying human behavior between ends and scarce means with alternative uses.
- Highlighted the importance of choice in conditions of scarcity in his work "An Essay on the Nature and Significance of Economic Science" (1932).
- Economics is concerned with behavior arising from limited resources to achieve objectives.
Growth-Oriented Definition
- Paul Samuelson's definition views economics as the study of societal choices regarding scarce productive resources.
- Focuses on the use of resources to produce goods and distribute them for current and future consumption.
- Widely recognized for his academic contributions, referred to by the New York Times as a premier economist of the 20th century.
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Description
Explore the foundational concepts of economics in this quiz covering Chapter 1. Delve into how economics is categorized as a social science and its relationships with human behavior and society. Understand its significance as the 'queen of the social sciences' as theorized by Paul Samuelson.
