Introduction to Economics:

A  simple and most widely  quoted definiation of economics is that given by the British

"Economics is the science which studies human behaviour as a relationship between ends and scare means which have alternative uses."

In the above definition, the word 'ENDS' refers to human wants usually classified as goods and services.  The word 'MEANS' refers to productive resources otherwise called factors of production.   In every society, the productive resources are combined in different ways to produce different types of goods and services.

Economics is described as a science subject based on the way econimists study and explain human behaviour concerning how best to allocate scarce resorces among competing uses. The  economists  adopt  scientific  method  in  which  theories  of  human  beahviour  and developed and tested against the facts in a way similar to the practice in the pure sciences like Chemistry and physics.   However, economics is more appropriately placed within the social sciences because its subject matter, human behaviour in the production, distribution and comsumption of goods and services can neither be controlled in the laboratory nor be predicted with absolute accuracy.