Introduction to Economic Definitions

Flashcards covering the historical definitions of economics, focusing on the Wealth Definition by Adam Smith and the Welfare Definition by Alfred Marshall.

Aristotle, the famous Greek philosopher, defined economics as the __________ of family affairs.

management

In ancient and medieval times, economics was known as the __________ of statecraft.

science

J.M. Keynes remarked that "__________ is said to have strangled itself with definitions."

Political economy

The four heads under which definitions of economics are grouped are wealth, welfare, __________, and growth-oriented.

scarcity

Classic economists like Adam Smith, J.S. Mill, Ricardo, and Senior defined economics as a science of __________.

wealth

Adam Smith, the father of modern economics, wrote the famous book titled An Enquiry into the Nature and Causes of the __________ in 1776.

Wealth of Nations

Adam Smith is considered the founder symbol of free market economies and a supporter of __________, which in French means 'leave alone'.

laissez-faire

Smith's framework explains how rational self-interest and competition through 'the __________' lead to the most efficient use of resources.

invisible hand

The noted French economist __________ regarded economics as "the science which treats of wealth."

J.B. Say

Nassau William Senior stated that the subject treated by Political Economy is not happiness but __________.

wealth

The wealth definition of economics considers an '__________' who is aware of his self-interest and seeks material gains.

economic man

Critics like Thomas Carlyle and John Ruskin dubbed the wealth-based definition of economics as a __________, a dismal science, or the gospel of mammon.

pig science

According to classical economists, wealth consists of __________ or tangible goods, excluding services like health and education.

material

Alfred Marshall, a Professor of Political Economy at __________ University, gave the 'welfare definition' of economics.

Cambridge

Alfred Marshall defined economics as a "study of __________ in the ordinary business of life."

mankind

Marshall's book, published in 1890 and considered a world-wide influential textbook, is titled __________.

Principles of Economics

In Marshall's view, the "__________ of life" refers to the income-earning and income-spending activities of mankind.

ordinary business

Marshall emphasized __________ as the primary concern of economics, specifically the part of human welfare related to wealth.

material welfare

Marshall excluded political, social, and religious activities from economics because they are not __________ in terms of money.

amenable to measurement

A.C. Pigou defined __________ as that part of social welfare that can be brought into relationship with the "measuring rod of money."

economic welfare