Economics (Introduction-1)

Any discussion on a subject must start by explaining what the subject is all about i.e., by defining the subject.
The principal fact about Economics to be remembered always is that it is a social science.
The word ‘Economics’ originates from the Greek work ‘Oikonomikos’ which can be divided into two parts:
(a) ‘Oikos’, which means ‘House’, and
(b) ‘Nomos’, which means ‘Management’.
In a dialogue* between Xenophons and Critobulus; Greek scholars, on the subject of matter of economics:
“Tell me, Critobulus, is economics the name of a branch of knowledge, like medicine, smithing and carpentry?”
“I think so,” replied Critobulus.
“And can we say what the function of economics is…”
“Well, I suppose that the business of a good economist is to manage his own estate well.”
“Is it possible, then, for one who understands this art, even if he has no property of his own, to earn money by managing another man’s estate…?”
“Yes, of course; and he would get a good salary ……”
“But what do we mean now by an estate? Is it the same thing as a house…?”
“Well, I think that …… everything a man possesses is part of his estate.”…
“And you, I think, agree with me to this extent, that wealth is that from which a man can derive profit…..”
Thus, Economics means ‘House Management’. The head of a family faces the problem of managing the unlimited wants of the family members within the limited income of the family. Similarly, considering the whole society as
a ‘family’, then the society also faces the problem of tackling unlimited wants of the members of the society with the limited resources available in that society. Economics; thus, would mean the study of ways in which mankind organizes itself to tackle the basic problem of scarcity of resources. All societies have wants more than resources available to satisfy them. Hence, economics is the study of alternate systems requisite to allocate these resources between competing ends.