 from Krishnakanta Hendex State Open University. I would like to welcome you all to my online class on Introduction of Economics which is included in first semester paper on Introduction of Economic Theory 1. So, in this class we will discuss about the definition of economics. Next the nature and scope of economics. Next the concept of stock and flow. Then scope of micro and macroeconomics. The definition of economics was given by several economics at several time and Adam Schmidt was considered as one of the pioneer among them. Adam Schmidt in his book The Wealth of Nation which was published in 776 he defined economics as a study of wealth. According to Adam Schmidt the discipline of economics should study how to acquire wealth, how to distribute wealth. But the definition is given by Adam Schmidt was severely criticized due to its inherent limitation. First according to the economist that Adam Schmidt gives more importance on wealth ignoring the another important aspect that is welfare. And Adam Schmidt ignores very important issue in economics that is scarcity of resources. So, as a result Alfred Marcel there is another famous economics he in his book in Civil Law of Economics which was published in 1890 he defined economics as economics examines that part of social and individual action which is most closely connected with the attainment and with the use of material requisite of wealth. Thus it is on the one side a study of wealth and on the other more important side a part of the study of wealth. That means in the Alfred Marcel definition he includes both wealth as well as study of man. So, as a result Alfred Marcel definition was considered to be comparatively superior than the definition given by Adam Schmidt. But Alfred Marcel also ignores a very important aspect that is you know the scarcity of sources and all the resources have alternative. Then another famous economics that is Lionel Robins gave the definition of economics as economics is a science which studies human behavior as a relationship between ends and skirts means which have alternative uses. Now if you analyze the definition is given by Lionel Robins it basically gives importance on three aspects. At first Lionel Robins stress on the fact that human wants are unlimited as all of you noted human wants are unlimited. But the resources to satisfy those wants are limited. So, as a result economics should study how to allocate our resources in such a way that we can meet our unlimited wants with our limited resources in the best possible manner. But Adam Schmidt definition also you know criticized by several economics and later the another definition is given by Paul S. Semuelsian. So, Semuelsian define economics as economics is the study of how man and society choose with or without the use of money to employ scarce productive resource which could have alternative uses to produce various commodities over time and distribute them for consumption now and in the future among various people and group of society. So, these are basically the definition given by various economics as various time. So, next we will study about Nessar and scope of economics. Now if you see the Nessar of economics as we have already discussed that economics will include wealth welfare then distribution of wealth all the issues will be discussed in economics and the scope of economics is very wide. So, that since scope of economics is very wide it is very necessary that we should divide the subjects into some a process. Say that scope of economics can be broadly categorized into two categories that is microeconomics and macroeconomics. Scope of economics can be again categorized as positive economics and normative economics. In case of positive economics we will study economics as it is we will not put any kind of values as man. But in case of normative economics along with study of wealth welfare we have to put some value as man that means what it should be what should be the ideal distribution of resources. Next if you see the the subject of economics this is it is basically economics is a concept of choice as an economic problem. In economics as I have already told you since we have limited resources and we have unlimited ones. So, we have to make a choice that means where to distribute our resources in such a way that we can attain maximum satisfaction out of our limited resources. Next another important concept this is frequently used in economics is the stock and flow variables. Now if you study any variable at a point of time that means that is a concept of stock. Now if you study any economic variable over a period of time then this is known as a flow concept. So, let me give you a very simple example. Suppose if you are talking about money supply in an economy. So, whenever you are explaining money supply in an economy it always relates at a point of time. So, that is why money supply is a stock concept. Now if you see the national income whenever you are talking about national income we are talking about national income over a period of time say for a year. So, that is those kinds of variables are called flow variables. Next we will discuss about you know scope of micro and macro economics. Now what is micro economics? The name itself indicates that micro means small that means in micro economics we will discuss about but we usually discuss about individual unique that is individual firm, individual consumer. So, we are not that means we are not concentrate on aggregate of those variables. Now what are the theory basically we study in micro economics that is determination of prices of factors, determination of prices of communities under different market situation. Next the welfare economics and determination of prices of factors of production. So, those all issues are basically included in micro economics. Next what is macro economics? As I have already told you in case of micro economics in macro economics also the name indicates that macro means large that means here we will discuss about the aggregate of those economic entities that is aggregate of consumer, aggregate of productive resources. Now what are the topics or you know issues we are going to study in macro economics that is the theory of employment, the theory of inflation, the theory of national income, the theory of growth that. So, those all issues will be discussed in macro economics. So, thus we have learned that in this class thus we have learned that in economics we will study about what to produce, whom to produce, how to distribute all those issues will be discussed in economics and economies will concentrate on how to distribute our resources in such a manner to attain the maximum satisfaction and broadly economics can be classified into you know two categories micro economics and macro economics and you can also categorize economics in terms of positive economics and normative economics. So, this is all for today and I hope that from this class you got some idea about the basics issues of economics. Thank you.