Understanding the Nature and Scope of Economics

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Questions and Answers

According to Adam Smith, what did he define as the subject matter of economics?

Basic economic problems
Allocation of limited resources
Production and expansion of wealth (correct)
Maximizing utility

What does economics seek to analyze, according to the given text?

Optimal resource allocation (correct)
Growth strategies of a society
Production and expansion of wealth
Maximizing utility

What did the Classical economists view as the science of wealth?

Production and expansion of wealth (correct)
Basic economic problems
Allocation of limited resources
Maximizing utility

What is the main focus of economics, based on the text?

<p>Production and expansion of wealth (D)</p> Signup and view all the answers

What does the term 'economics' mean, as per the text?

<p>Science of wealth (A)</p> Signup and view all the answers

Study Notes

Economics Overview

Adam Smith defined the subject matter of economics as the "study of wealth".
Economics seeks to analyze the "production, distribution, and consumption of goods and services".
To the Classical economists, economics was viewed as the "science of wealth".
The main focus of economics is the "study of mankind in the ordinary business of life".
The term 'economics' originates from the Greek words "oikos" meaning "house" and "nomos" meaning "law" or "management", implying management of household resources.

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Description

Learn about the fundamentals of economics, including the analysis of human decision making and resource allocation in society. Explore the concept of economics as the science of proper resource utilization.