Define microeconomics,, Study notes of Microeconomics

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Essentials of Economics 1 Introduction to Economics CHAPTER 1 OF © ECONOMICS INTRODUCTION TO ECONOMICS ST 1. DEFINITION OF ECONOMICS BY ADAM SMITH Adam Smith (1723-1790) was British Economist. He was the founder of Classical School of-Thought. He was the first man who started writing on economic problems. His book, “An Inquiry into the Nature and Causes of Wealth of Nations” was published in 1776. j Adam Smith This was the first ever book on Economics. In his book, Adam Smith defined economics in the following words: ( “ECONOMICS IS THE SCIENCE OF WEALTH” This is the first-ever definition of economics. Adam. Smith discussed four aspects of wealth in his book, which is as follows: A, PRODUCTION OF WEALTH In this part of the book, he discussed that how goods and services are produced with the help of four factors of production i.e,, Land, Labor, Capital & Enterprise. So according to Adam Smith, production of goods and services is the production of wealth. B. DISTRIBUTION OF WEALTH This part of the book is related with the distribution of goods and services produced.