Subject Matter of Economics

As the subject matter of economics is rapidly increasing, its scope is also increasing. The father of economics Adam Smith as well as Classical economists had presented economics as a science of wealth. The subject matter of economics is wealth for classical economists. Neo-classical economists including Marshall defined economics as a science of material welfare. Hence, material welfare is a subject matter for neo-classical economists. Later, Prof. Lionel Robbins defined economics as a science of scarcity and choices. Thus, subject matter of economics has been extended to every human activity related to scarce resources having alternative uses.

Economics studies man's life and work, not the whole of it, but only one aspect of it. Economics only tells us how a man utilizes his limited resources for the satisfaction of his unlimited wants.  A man has a limited amount of money and time, but his wants are unlimited. He wants to get fulfill his wants and used his effects and he gets satisfaction.