ALLAMA IQBAL OPEN UNIVERSITY, ISLAMABAD
(Department of Economics)
Course: Economics (402)
Semester: Spring, 2018
ASSIGNMENT No 1
Q NO: 1 Explain different definitions of economics. Also differentiate micro and macroeconomics.
There are a variety of modern definitions of economics. Some of the differences may reflect evolving views of the subject itself or different views among economists.
The branch of knowledge concerned with the production, consumption, and transfer of wealth. The condition of a region or group as regards material prosperity. -Ahmedul.
The earlier term for ‘economics‘ was political economy. It is adapted from the French Mercantilist usage of économie politique, which extended economy from the ancient Greek term for household management to the national realm as public administration of the affairs of state. Sir James Steuart (1767) wrote the first book in English with ‘political economy’ in the title, explaining that just as:
Economy in general [is] the art of providing for all the wants of a family, [so the science of political economy] seeks to secure a certain fund of subsistence for all the inhabitants, to obviate every circumstance which may render it precarious; to provide every thing necessary for supplying the wants of the society, and to employ the inhabitants … in such manner as naturally to create reciprocal relations and dependencies between them, so as to supply one another with reciprocal wants.