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INTRODUCTION TO ECONOMICS Definition and Nature Economics is a relatively new science: it came into being a little over two centuries ago. So far it has developed into three main stages : the Classical (Adam Smith 1776), the Neo classical (Marshallian 1885), and Modern Keynesian (Macro 1936) schools. Corresponding to these there are three distinct definitions of the subject. Initially it was considered as a science of wealth , through its fourfold activity of consumption, production, distribution and exchange . Marshall related the subject to economic welfare , ’most closely connected with the attainment and the use of material requisites of well being.’ However Lionel Robbins (1932) gave the subject a positive scientific basis . His definition is widely acknowledged: Economics is the science which studies human behavior as a relationship between ends and scarce means which have alternative uses . In this way, Robbins has at once relieved economics of both
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This note was uploaded on 11/17/2011 for the course EC ec 201 taught by Professor - during the Fall '10 term at Montgomery.

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