Introduction to Economics

Key Economists

• Ragnar Frisch and Ragnar Frisch coined the terms microeconomics and macroeconomics.
• Kautilya, also known as Chanakya, authored the Indian political treatise called Arthashastra.

Defining Economics

• Economics can be referred to as a queen of social sciences by Paul Samuelson.
• The wealth-oriented definition of economics was given by Adam Smith, focusing on the production of wealth.
• The scarcity-oriented definition of economics emphasizes the allocation of scarce resources among competing uses, highlighting the problem of scarcity.
• Adam Smith defines Economics broadly as a study of the nature and causes of the wealth of nations.

Economic Terms

• Goods refer to anything that has market value and can be exchanged for money.
• Income that is paid according to terms and conditions is called salaries.
• Exchange refers to the actual transfer of goods from one person to another.
• Commodities satisfy human wants.