Notesale: Turn your study into money

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INTRODUCTION TO MANAGERIAL ECONOMICS 
      Man has unlimited wants
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One may be thirsty at
one time
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When he gets food, he may want to recreate, and so
on
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To satisfy wants, he does efforts
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The income is used to satisfy his
wants
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Wants, efforts, income
and satisfaction all give rise to economic problems
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The main problem that a man faces is how to get maximum satisfaction
from the limited resources avajlable
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Thus, multiplicity of wants and scarcity of resources are the two foundation stones of Economics
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It is called 'social' because it studies mankind and society
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It is called science because it studies SoCial problem (the problem of choice) from a
scientific viewpoint
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Samuelson once called economics as the queen of social sciences
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It is called so because it influences greatly on the lives of people
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 The word 'Economics' has been derived from the ancient Greek word 'oikonomia'
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The earliest definition of economics considered that it is a subject dealing with household
management
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Several economists have defined economics in different ways
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All definitions of economics may be broadly divided into four - (1) Wealth definition
(2) Welfare definition (3) Scarcity definition, and (4) Growth definition
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Adam Smith defined Economics as the study of the nature and causes
of national wealth
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Adam Smith is considered to be the father of
economics
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Marshall's Definition (Welfare/Neo-classical Definition)
 AloLner definition was given by Alfred Marshall
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He defined (in his boOk, "Principles of Economics" published in 1890) economics as follows:
"Political economy, or economics, is a study of mankind in the ordinary business of life: it examines that part of
individual and social action which is most closely connected with the attainment and with the use of the material
requisites of well-being Marshall shifted the emphasis from wealth to welfare
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According to him economics studies both wealth and man
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Robbins's Definition (Scarcity Definition)
Robbins gave a definition of economics in his famous book, '"Nature and Significance of Economic Science" published
in 1932
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It is given as follows: "Economics is the science which
studies human behaviour as a relationship between ends and scarce means which have alternative usesn Our wants
(or ends) are unlimited
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A man cannot satisfy all
of his wants with his limited resources
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Therefore,
the problem of choice arises
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Hence, economics is rightly described as a science of choice
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Scarcity is the root of all economic problems
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The credit of bringing about a revolution in economic thinking goes to Lord J
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Keynes
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Recentlv, Prof
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His definition is
as follows: "Economics is the study of how men and society choose, with or without the use of money, to employ
scarce productive resources s which could have alternative uses, to produce verious commodities over time, and
distribute them for consumption now and in the future among various
 people and groups of society"
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Samuelson's definition is popularly known as growth definition
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It can be concluded that economics is a study of how
people use their limited resources to satisfy their unlimited wants

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