Basic Concept and Definition of Economics


Whenever an infant born in this world he/she has needs many things to endure in this world such as sunshine, water, air (oxygen), milk, food, clothings and shelter (housing) etc. some of these demands are satisfied freely (free of cost) like sunshine and oxygen etc since these are offered in abundance. These kind of wants are ‘Non-economic Wants’ in Economics However, to satisfy some other requirements (like milk, food, clothes and shelter (housing) etc) one needs to pay something in exchange. One has to pay a price for these scarce resources in terms dollars (currency), other products & resources (for barter or exchange) or may has to render some service in exchange. Thus these kinds of requirements or wants are called ‘Financial Wants’ in Economics. For that reason, the Economics studies that how individuals meet their Economic Wants through managing these Scarce Resources.

Meaning of Economics.

As gone over previously that Resources are scarce and a guy has to pay something for meeting his/her has to get these Scarce Resources. So, Economics studies that how a person manages the limited resources to obtain optimal utility (fulfillment). Economics is Social Science Which Studies Human Economic Habits. By human Financial Habits, hereby, we suggest the habits of humans which they adopt to fulfill their economics desires.

The Resources in this world are scarce so people need to make the reasoning decisions (choices) to handle and make use of these limited resources. So, Economics often termed as the science of deficiency and option. One thing should also be explained that the limited resources have numerous (alternate) uses and male has to choose (choose) about the ideal usage of these resources. In context of ‘Shortage and Choice’ Robins specifies the term Economics as below,.

“Economics is a Social Science which researches human habits as a relationship between numerous ends and scarce resources which have alternate uses.”.

In this definitions 3 terms are utilized: (i) Multiple Ends i.e wants are unrestricted, (ii) Scarce Resources i.e resources are scarce and (iii) Multiple Utilizes i.e. the resources have multiple uses.

Subsequently, we can say that Economics research studies human habits that how he meet his/her unlimited desires and desires through managing his/her limited resources and by making optimal option about best use of the resources amongst their alternate uses. There the concept of preference is established that to manage multiple desires from restricted (limited) resources he/she needs to preferential about the choices. He/she may choose his/her one want or desire over other then very first he/she might fulfill his/her more preferred option first because of the Shortage of resources. For more info, please check out economics tuition to find out more.