Background Information
Different definitions of economics have been presented by various economists.
First of all Adam Smith who is regarded as the father of economics, defined economics in terms of wealth in 1776 in his publication “An Inquiry into the Nature and Causes of Wealth” in the words.
“Economics is a study of causes of wealth of nations”. Some other economists like J.S. Mill also defined economics in terms of wealth saying that “economics is the practical science of production and distribution of wealth”.
Definitions based on wealth were criticized by Ruskin and Carlyle on the basis that economics being a science of wealth teaches selfishness and misguides human beings.
They stated that economics is a science of “bread and butter”.
Therefore, we can say that, economics is economic process consists of one or more PRODUCERS exchanging some amount of goods, services and money with one or more CONSUMERS.
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