Subject matter of Economics
There is a different of opinion among economists regarding the subject-matter of economics. We may say that economics is the study of man's action in relation to wealth. It studies how the man produce, consumes, distributes and exchanges of wealth. According to Adam Smith economics as a subject which is mainly, concerned with "an Inquiry into the Nature and Causes of wealth of nations." According to classical economists the subject matter of economics is to get more and more wealth.
Within the words of Marshall “Economics is the study of material, in the ordinary business of life. It analyzes that part of individual and social action which are closely attach with the material requisites or well-being” in this definition, Marshall has shifted the emphasis from wealth to man. Man has given primary importance and wealth has given secondary importance.
According to Neo-Classical Economists the subject matter Economics is to get more and more material welfare. Those Activities which provide material welfare should be included in the Scope of Economics. And those activities which do not promote material welfare should be excluded from the scope of economics. The services of teacher, policeman, doctor etc. should not be included in the study of Economics.
According to Robin's economics is concerned with the study of human behavior as a relationship between end and scarce means which have alternative uses. In another words economics is the study of scarcity problems. Man is always busy in adjusting limited resources for the satisfaction of unlimited wants. The problems that center round such activates constitute the subject-matters of economics.
Paul A Samuelson, however, includes the dynamic aspects of economics in the subject matter. According to him, Economics is the study of how man and society go for with or without money, to employ productive uses to produce various commodities over time and distribute them for consumption now and in afterward amid different people and groups of society.
Nature of Economics
Economics has the qualities of both science and art. Economics is considered as a science because it is a science in its methodology and arts in its application. It has theoretical aspects and also applied science in its practical aspects. However, the degree of perfectness of economics laws is less compared with the laws of pure sciences.
An art is the practical application of knowledge for achieving definite ends. A science teaches us to know a phenomenon and the art teaches us to do a thing. For example, there is inflation in a country; this information is derived from positive science. The government gets certain fiscal and monetary policy to bring down the general level of prices in the country. The analysis of the fiscal and monetary policy to bring down inflation makes the subject of economics as an art. After arriving at a wind up that economics is both a science as well as an art.
Economics as a positive or normative science
In discussion the scope of economics we have also to consider whether economics is a positive or normative science. Lionel Robbins has described economics as a positive science. He explains that economics is based on logic and it is a value theory only. It is, therefore, neutral between ends. Marshall, Pigou, Keynes and many other economists regard economics as a normative science. According to them, the real task of the science is to enlarge the well-being of human. They have given suggestions in their works for promotion of human welfare For example; Malthus has given suggestions of checking the rising population Keynes has suggested measures to remove unemployment.