2. Adam Smith’s Definition-Wealth Definition
Adam Smith (1723-90) defined Economics as follows:
“Economics is the science of wealth”. He is the author of the famous book
‘wealth of Nations ‘in 1976.He is known as the Father of Economics ,he was the
first person who put all the economic ideas in a systematic way. It is only after
Adam Smith, we study economics as a systematic science
Alfred Marshall’s Definition –Welfare Definition
Alfred Marshall (1842-1924) wrote a book Principles of Economics in 1990.In
it; he defined economics as “a study of mankind in the ordinary business of
life”. An altered form of the definition is “Economics is a study of man’s
actions in the ordinary business of life”.
Definitions of Economics

3. Lionel Robbins’ Definition –Scarcity Definition
“Economics is the science which studies human behavior as a relationship
between ends and scarce means which have alternative uses”
Robbins has given the above definition in his book ‘An Essay on the Nature and
significance of Economic Science’.
Samuelson’s Definition-Modern Definition of Economics
“Economics is a social science concerned chiefly with the way society chooses to
employ its resources, which have alternative uses, to produce goods and services for
present and future consumption”

4. Main Divisions and Basic concepts of Economics
There are four main divisions of economics. They are Consumption,
Production, Exchange and Distribution. In Modern times, economists add one
more division and that is Public finance.
Consumption
The economic activity by which individuals try to satisfy their needs and wants
are called as consumption. The objectives of consumption are to satisfy needs
and want whereas the consumer seeks satisfaction or utility.
Production
The process of changing, by adding value, raw materials into finished goods is
called production, in other words, production is a value adding process to the
raw materials in order to make final products.i.e the process of employing
scare resources to satisfy human needs is known as production.
Exchange
Goods may be exchanged for goods or for money. If goods are exchanged for
goods, we call it barter. Modern economy is a money economy .As goods are
exchanged for money.
Distribution
Wealth is produced by the combination of Land, Labour, Capital and
organization, and it is distributed in the form of rent, wages, interest and
profits.
Public Finance
Public Finance deals with the economics of government .it studies mainly
about income and expenditure of government.

5. In plural sense, statistics refers to quantative
data, Statistics is the science of counting-
Dr.A.L.Bowley
Statistics is the collection, presentation,
analysis and interpretation of numerical
data-Croxton and Cowden

6.  Statistics are aggregates of facts
 Statistics are numerically expressed
 Statistics are affected to a marked extent by
multiplicity of causes
 Reasonable standards of accuracy in
enumeration, estimation or collection
 Statistics are collected in a systematic
manner
 Statistics are collected for predetermined
purpose

7.  Collection of data
 Classification of data
 Presentation of data
 Analysis of data
 Interpretation of data

8.  Statistical method
 Applied statistics
Descriptive
Scientific

9.  It is a systemized body of knowledge
 Its rules and applications are universal.
 It establishes relationship between cause and
effect
 It helps in effective forecasting
 Its method are in order and serialwise
 Large degree of skills and experience
 Effective decision making

10.  Useful to bankers
 Useful to insurance company
 Useful to railways and other transport
agencies
 Useful to business
 Useful to economists
 Useful to planning

11.  Presentation of facts
 Simplification of complexities
 Facilitating comparisons
 Facilitating the formulation of policies
 Widening of human knowledge
 Useful in testing the laws of other sciences
 Facilitates the forecasting
 Establishment of correlation between two
facts

12.  Statistics does not study individuals
 Statistics deals with quantitative facts
 Statistics is true only to its averages
 Statistics may lead to fallacious conclusion
 Only experts can make use of statistics
 Homogeneity and uniformity is must

13. Any questions