Economics is the social science that
analyzes the production, distribution, and consumption of goods and
services.
The word economics comes from the
Ancient Greek “oikonomia”, where ‘oikos’ means "house" and `
nomos’ means “custom" or "law". In this sense “oikonomia” means
"management of a household, or "rules of the house"
There are
a diversity of modern definitions of economics. Some of the differences may
reflect evolving views of the subject or different views among economists.
Definition of Economics by Alfred
Marshall :
"Economics is a study of man in
the ordinary business of life. It enquires how he gets his income and how he
uses it. Thus, it is on the one side, the study of wealth and on the other and
more important side, a part of the study of man."
Definition of Economics by Lionel
Robbins:
"Economics is a science which
studies human behavior as a relationship between ends and scarce means which
have alternative uses."
Finally we can say that, the
theories, principles, and models that deal with how the market process works.
It attempts to explain how wealth is created and distributed in communities,
how people allocate resources that are scarce and have many alternative uses,
and other such matters that arise in dealing with human wants and their
satisfaction.