Micro economics

Adam Smith's Definition (wealth Definition)

                

                  ° Adam Smith (1723 - 1790) was Scottish philosopher .

°   He defined Economic as a " Economics is science of wealth "  in his book " An inquiry into Nature and causes of wealth of Nation "  ( 1776 ) 

° He is known as father of political economy because he was the first person who put all the economic idea in the sysmatical way . 

WEALTH DEFINITION : 

 

                ° The team  " Wealth "  has a special meaning in economics. In ordinary language wealth we means , money ,  but in economics wealth refer to  those goods which satisfy the human wants.

° we should keep in mind that " all goods are not wealth which satisfy the our wants" For example :  air , sunlight  are important in our life . We can't live without them . But they are not  Consider as a wealth because this goods are available abundance in nature and unlimited in supply. We consider only those goods which as a Money value and scarcity . 

criticism : 

             ° The socialist scientist like Ruskin and Carlyle  called economic as a "  dark science " and  " dismal Science " because misunderstanding about the nature and scope of economics . They throught that this definition is all about money . They concluded economic taught about how men and women make money. So , there called Economic as a "selfie science " 

° The above definition is unfair and false one .  In Economic wealth refer to those goods which satisfy the human want. 

° Adam Smith's definition got a bad name for economic and there is lot of criticism against this definition . 

° A great demerits of this definition is over - emphasis on wealth . There  is no doubt that we study wealth is economic but it's only part of economics but there is other side in fact more  important side Study of Of man. 

°  when we discuss about Adam Smith's definition of economics ,  we have of keep in mind the time he lived. He was writing his book at time England on the  " eve of industrial revolution " .  So, it's natural that Adam Smith's emphasized on wealth on large scale .