Scopes /Subject matter of economics

The economists are of different opinions regarding the subject matter of economics. Therefore, the subject matter of economics is gradually being wider. The subject matters of economics are as follows.

1. Economics is a social science: Economics deals with the activities of social being that is man living in the society. Economics does not deal with the activities of a man out of society. As a social science society discusses with the men living within the society.

2. Economic Activity: Economics does not discuss with all the activities of human being. But it discusses with economic activities. Economic activities are those which are related to money earning and money expanding. The activities have no monetary reward or the activities which have no exchange value would be excluded from economic activities. The economist Cairn Cross says, ‘Economics studies the part played by money in human affairs’.

3. To satisfy unlimited wants through the uses of limited resources: The main objectives of economic activities are to satisfy human wants. Human wants are unlimited. But the means of satisfying wants are very much limited. The principal objective is to utilize limited supply of factors of production and to earn maximum output through proper distribution of it by which maximum welfare can be earned.

4. Analysis regarding production, exchange, distribution, and consumption: Economic discusses all activities related to satisfying human wants. One of the main objectives of economics is the optimum utilization of limited resource in order to produce maximum goods and services. Moreover, man does not consume all of his output. Therefore, exchange system is introduced. Through the exchange of products, goods and services human wants are satisfied. Therefore, economics deals with production, exchange, distribution and consumption.

5. Economics is an impartial science: Economics is neutral and impartial science. According to Prof. L. Robbins, Economics is the neutral and unbiased analysis of human activities. The value judgment of any activity of a man is not the responsibility of economics. Any work whether good or bad, ought to be or ought not to be must not be discussed in economics.

6. Economics shows ways to solution of problem: Economic is both light bearing and fruit bearing. It creates knowledge regarding the problems as well as it shows the ways to the solution of problems.

As a whole economics should not be confine to a narrow scope. Rather the scope of economics is expanding day by day with the advancement of society.