Economics Essay

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Managerial Economics and Financial Accounting Reference : 1. . Engineering Economics and Financial Accounting by A. Ramachandra Aryasri and Ramana Murthy , Tata McGraw-Hill 2 Managerial Economics and Financial Analysis by S. A Siddiqui, , New Age international Publishers. Orgin of Economics : Our activities to generate income are termed as economic activities, which are responsible for the origin and development of economic as subject. Economics was originally introduced as a science if statecraft. It was concerned with the collection of revenue for the state i.e., government. Advisors to the government were also required to point out the best possible way of spending the revenue. Stages of Developing Economics as a Subject : [pic] 1.Wealth Concept : During the eighteenth and the early part of nineteenth century, Classical economist, such as Adam smith, J. B .Say and Walkar defined economics as the science of wealth. Adam smith systematicsed the concept in the form the book which was entitled as “An Enquiry into the nature and cause of the wealth on nations”. These economists stated that economics is related to and concerned with wealth. Criticism: It is assumed wealth as an end of human activities. If it is accepted in life, there will be no place for love, affection, sympathy and patriotism. Absence of these values will make our real life a hell. 2. Welfare concept: According to this concept, wealth as a means of satisfying human wants, not as an end of human activities. The important features of this welfare concept are as under, i) Economics is the science of human welfare ii) Economics is the study of mankind in the ordinary business of life iii) Economics is a social science iv) Economics is the study of only economic activities Criticism: Welfare concept was

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