Class XI, Principles of Economics, "Basics of Economics"

Concept

As a matter of fact a man is born with wants, which are always unlimited. A human being always try to satisfy his wants i.e. satisfaction of wants becomes a prime objective of his life. In order to satisfy his wants, a man has to work. Since most of the wants are mainly related to the materialistic well being of a person’s state of life, therefore the work that he doses gives him a material reward.
Economics deals with all those efforts or activities human being for bringing welfare in his life and for satisfying his wants performs them. The basic objective for the performance of such activities to achieve satisfaction and the driving force working behind it is to earn money it is to earn money i.e. to receive income.
In the light of above forts we can define in very simple words,” economics as: all the activities performed by man to earn income and it on achieving satisfaction of his wants are called economic activities or simply economics”
From the above definition, we get a specific definition in which economics moves i.e

• It deals only with economic activities,
• It deals only with human activities and
• It takes in to part the people who are social and normal.