Scope means the sphere of study. We have to consider what economics studies and what lies beyond it. The scope of economics will be brought out by discussing the following:
1. Subject - matter of economics:
Economics studies man's life and work, not the
whole of it, but only one aspect of it. It tells us how a man utilizes his limited
resources for the satisfaction of his unlimited wants, a man has limited amount
of money and time, but his wants are unlimited. He must so spend the money and
time he has that he derives maximum satisfaction.
2. Economics is a social science:
In a modern society, man produces what he does not
consume and consumes what he does not produce. When he produces more, he has to
sell the excess quantity. The process of buying and selling which is called as
exchange comes in between wants efforts and satisfaction. Economics studies how
this income - wages, rent, interest and profits - are determined. This process
is called distribution. This also comes in between efforts and satisfaction.
3. Economics, a science or an art:
A science is a systematized body of knowledge
having some laws and principles. Economics also many laws and principles have
been discovered and hence it is treated as a science.
An art lays down formula to guide people who want
to achieve a certain aim. In this angle also economics guides the people to
achieve aims, like removal poverty, more production etc. In short economics is
both science as well as art also.
4. Economics whether positive or normative
science:
A positive science explains 'why' and 'wherefore'
of things, causes and effects and normative science on the other hand rightness
or wrongness of the things. In view of this, economics is both a positive and
normative science.
Finally, economics has a wide range of use in
every sphere of life.
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