Literature Summary: Nature And Scope Of Economics

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Nature and Scope of Economics: A discussion
Table of contents
1. Introduction
1.1. Literature Review
1.2. Research Questions
1.3. Scope and Objectives
1.4. Research Methodology
2. Criticism and Definition of Economics
2.1. Adam Smith
2.2. Alfred Marshall
2.3. Growth definition
3. Contents of Economics-Approaches
3.1. Traditional approach Consumption Production Exchange Distribution Public finance
3.2. Modern approach Microeconomics Macroeconomics
4. Economics as a science or an Art?
5. Positive Science or Normative Science
6. Methodology of Economics
6.1. Deductive Method
6.2. Inductive Method
7. conclusion

1. Introduction
Economics is
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Adam smith in his book “Wealth of Nation” defined economics as a social science, Alfred Marshall in his book “Principles of Economics” means the study of business affairs and Paul Samuelson’s definition of Economics. Definitions of Economics as given by different economists can be classified into four main groups: Wealth definition, Welfare definition and Growth definition.

1.1. Literature Review
The economic concepts have a wide application in the formulation of various policies and economic laws. The application of economic concepts not only reveals their significance in economic laws involved, but also helps in arriving at an optimum solution to the problem. It covers the relevant and important aspects of both micro and macro economic theories, along with a basic understanding of the Indian Economy.
1.2. Research Questions
1.2.1. Why it is important to study nature and scope of economics before studying the
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Economics as a science or an Art?
Science traces the relationship between cause and effect. Another attribute of science is that its phenomena should be amenable to measurement. Economics is the branch of knowledge where the various facts relevant to it have been systematically collected, classified and analyzed. J.M. Keynes defines art as “a system for the attainment of a given end.” Art helps us to formulate the rules and teaches us how to do things. Economics can be regarded as a science as well as an Art. As a science it is the systematic study, makes generalizations and theories using scientific methods. As an Art, it puts knowledge into practice.
5. Methodology of Economics
5.1. Deductive method
The method is descending from general to specific. The deductive method is useful in analyzing complex economic phenomenon where cause and effect are inextricably mixed up. However, the deductive method is useful only if certain assumptions are valid.
5.2. Inductive Method
This method mounts up from particular to general, i.e., we begin with the observation of particular facts and then proceed with the help of reasoning founded on experience so as to formulate laws and theorems on the basis of observed