ECONOMICS
Economics is the social science that
studies the production, distribution, and consumption
of goods and services. The word 'economics' is from
the Greek words oikos, meaning house, and nomos, meaning
custom or law, hence "rules of the house."
Originally referred to as political economy, the term 'economics' grew in popularity with the rise of neoclassical economics after 1870. Discussions about production and distribution date back to ancient laws and to philosophers, such as Plato
Economics in its modern sense is conventionally dated from the publication of Adam Smith's The Wealth of Nations in 1776. In this book, Smith defines political economy:
Political economy, considered as a branch of the science of a statesman or legislator, proposes two distinct objects: first, to supply a plentiful revenue or product for the people, or, more properly, to enable them to provide such a revenue or subsistence for themselves; and secondly, to supply the state or commonwealth with a revenue sufficient for the public services. It proposes to enrich both the people and the sovereign.
