Scope means an area of study or coverage of the particular subject. Scope of economics means area covered by subject economics i.e. the whole topics which should be studied in economics. The scope contains two headings. They are subject matters and nature of economics.
The area covered by economics is the subject matter of economics. The subject matter of economics is studied with the help of following three points:
i. On the basis of definition
ii. Traditional approach
iii. Modern approach
Different economists have a different view regarding the subject matter of economics. The classical economists, Adam Smith considered economics as a science that deals with wealth. Therefore, the subject matter of economics is the study of nature and causes of the wealth of nation. The leader of Neo-classical economists, Alfred Marshall considered economics as the science of welfare. Therefore, the subject matter of economics in the study of mankind in the ordinary business of life. The economists, L.Robbins considered economics as a modern or scarcity and choice definition. Therefore, the subject matter of economics is the study of human behavior as a relationship between ends and scarce means.
According to the traditional approach, economics deals with the activities of man. It deals with those activities of man through which he tries to satisfy his wants. There are three fundamental economic wants such as food, cloth, and shelter. As we know, the human wants are unlimited but the means to satisfy them are limited. When the first want is satisfied, second wants arises and to fulfill the second urgent want, effort should be done to get resources or means. Therefore, according to the traditional approach, the continuous circle of unlimited wants, efforts and satisfaction are known as a subject matter of economics.
According to traditional approach, subject matter of economics includes following things:
According to modern view, the subject matter of economics is divided into two parts:
According to K.E. Boulding, "Micro economics is the study of a particular firm, household, individual price, wages, income, individual industry and particular commodity".
According to K.E. Boulding, "Macroeconomics is the study of the nature, relationship, and behavior of aggregate and averages of economic quantities."
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