Three points describing the scope of Economics include _____.
The subject matter
of economics deals with the analysis of economic problems of people and the satisfaction of their wants. With the evolutionary changes of
the society and its civilization, the subject matter scope of economics has expanded.
Scope of economics is discussed below:
1. As social science, economics deals
with the economic activities of human beings. A person's day to day earning and spending activities constitute the subject matter of
economics. For example, parents’ affection and nursing of their
children is not the subject matter of economics.
2. Resources are needed to satisfy
people's wants. So, the availability of resources and their use are important
subject matter of economics. Adam Smith has termed economics as the “Science of
Wealth”.
3. People's wants are unlimited but the
resources to satisfy these wants are limited. Economics discusses how human beings can get maximum satisfaction by using these scarce means of resources to satisfy their wants on the
basis of priority. So, as subject matter of economics, the scarcity of
resources is considered very important.
The subject matter of economics deals with the analysis of economic problems of people and the satisfaction of their wants. With the evolutionary changes of the society and its civilization, the subject matter scope of economics has expanded. Scope of economics is discussed below:
1. As social science, economics deals with the economic activities of human beings. A person's day to day earning and spending activities constitute the subject matter of economics. For example, parents’ affection and nursing of their children is not the subject matter of economics.
2. Resources are needed to satisfy people's wants. So, the availability of resources and their use are important subject matter of economics. Adam Smith has termed economics as the “Science of Wealth”.
3. People's wants are unlimited but the resources to satisfy these wants are limited. Economics discusses how human beings can get maximum satisfaction by using these scarce means of resources to satisfy their wants on the basis of priority. So, as subject matter of economics, the scarcity of resources is considered very important.
