The concept of economics was firstly introduced by the Greek philosopher ‘Ariatotle’. The broad explanation of economics derived it’s clear definition as study of human behavior.
According to Adam Smith
“Economics is the science that studies human behavior as a relationship between ends and dcare means which have alternative uses”.
Thus economics studies about how the people choose scarce productive resources that have alternative uses to produces that have alternative uses to produce and distribute goods among consumers. Thus economics as a science that studies about production, distribution and consumption of good & services using available resources.
Exception/Limitation of Economics
Economics is a study that studies about human behavior relating to the environmental activities. Economic activities is mainly depend on producers and consumers. Hence, in economy there are large number of population who have unlimited wants but resources are limited. Thus this cause and effect creates an economic problem ‘scarcity’. The scarcity problem compels us to decide about what to produce, how to produce, when to produce and whom to produce? While making choice about our decision we have to rank our needs/necessities on the basis of urgencies and affordability which provides maximum satisfaction.