Introduction to Economics

What does the term 'economics' originally refer to?

How did Adam Smith define economics?

Which of the following definitions of economics focuses on improving human well-being?

What essential aspect of economics relates to the management of resources that are limited?

What does the Growth Definition of economics imply?

What is one primary function of political theorists?

Which aspect does political theory primarily focus on when studying political phenomena?

How does political theory aid in understanding political events?

What historical significance does the term 'theory' hold in the context of political theory?

What is an essential component of studying political theory?

What is Economics?

Economics is derived from two Greek words: 'Oikos' (household) and 'nomus' (management).
Initially, economics focused on household management and the principles of managing limited income.
Later, economics evolved to study the wealth of a country and the laws that govern it ('Arthashastra').
Economics examines how a king manages the economy and collects/spends taxes to keep the people happy.
The term "economics" was first used in 1890 by Dr. Marshall in his book "Principles of Economics".

Different Definitions of Economics

Wealth definition: Adam Smith defined economics as the study of wealth, particularly focusing on the wealth of nations (1776). Wealth, in this context, refers to goods that satisfy human wants, not just money.
Welfare definition: Alfred Marshall viewed economics as studying human activities related to wealth-getting and wealth-using. It focuses on human well-being, encompassing both material welfare and other aspects of human welfare.
Scarcity definition: Economics is concerned with the allocation of scarce resources to satisfy unlimited human wants.
Growth definition: Economics emphasizes the growth of a nation's economy, increasing the overall wealth and well-being of its citizens.

This quiz explores the foundational concepts of economics, including its origins and various definitions from key economists. Understand how economics evolved from household management to the study of national wealth and human welfare. Test your knowledge of influential figures and their contributions to the field.