Nature and scope of economics
NATURE AND SCOPE OF ECONOMICS Economics comes from two Greek words “okoi” and “nemeim” meaning the management of the household. ... Essentially economics is a social science which studies man living in a society and confronted with some practical problems of life. ... Therefore there is the problem of scarcity and hence man has to make choice, thus the subject matter of economics is scarcity and choice. Economics has been variously defined. Adams Smith defines economics as an “inquiry into the nature and causes of wealth of nations. ... According to him economics is a social science, which studies human behavior as a relationship between ends and scarce means, which have alternative uses. ... Land is a free gift of nature, permanent, fixed in supply, geographically immobile, differing in fertility and having no cost of production. ... An important technical limitation can be the nature of the product. ... NATURE AND FUNCTIONS OF MONEY Money is anything, which is generally acceptable in the settlement of debts. ... Nature and functions of organization in an economy. ... There is little scope for specialization and division of labour. ... There is greater scope for expansion by admitting new partners. ... Both may influence the rate of investment, although the exact nature of the effect is not easy to predict.