Nature of economics

 Economics , Grade XI

Nature of Economics

Why to Study Economics?

Economic goads are scarce or insufficient. Society must choose the best one among the limited goods that are produced with its available resources. The essence of economics is to acknowledge the reality of scarcity and then figure out how to organize society in a way which produces the most efficient use of resources. It is the study of how society uses scarce resources to produce valuable goods and services and distribute them among different individuals. If the resources to produce goods and services are not scarce then we should not worry about how to use resources efficiently, and this limits the use of economics. But due to the scarce resources we have to make wise use of them. Economics teaches us to make the best use of our scarce resources

Introduction  

The word 'ECONOMICS' is derived from Greek word 'OEKONOMICUS'. In Greek 'OEKO' means household activities and 'NOMICUS' means study. In Nepali, it means "Arthasaastra". So literally it is the study of household affairs. Many Greek philosophers have defined economics in a variety of ways:  According to Xenophone, "Economics is the science of household management."  Similarly, Aristotle defines, "Economics is not only the science of household affairs but also the science of exchange or science of acquiring wealth." Until the medieval age, Economics was considered as a subsidiary science of Christian ethics. Philosophers of the then time considered wealth as the means of salvation and fulfilling divine order. They regarded religious activities more important than wealth.