1.

Adam Smith

As a Science of Wealth

He is known as Father of Economics He define Economic as:

2. Alfred Marshall
He is the most influential economist of his time. His book Principle of Economics was a dominant economic text book. He define Economic as: A Science which studies Human Welfare

3. Lionel Robbins
He was head of Economics department in London School of Economics. He define Economic as: Economics is a science which studies human behavior as a relationship between ends and scare means which have alternative uses.

WHAT DO YOU MEAN BY EVOLUTION?

The gradual development of something.

The process by which different kinds of living organism are believed to have developed from earlier forms during the history of the earth.

of Economic Life 1. Hunting and Gathering stage 2. Pastoral Stage 3. Agriculture and Handicraft stage. Concepts and Motives Behind Agriculture stage 1. Division of Labour in Tribes 2. Economy of Feudal Exchange 3. Industrial stage 4. Private and Public ownership

Stages

The constant efforts of man, have awarded him with the present Economic progress and prosperity. Science and technology are responsible for present economic development. In past, life was very difficult, man passes through different stages and has reached to present developed and refined economic position.

There are three stages of Economic Life.

Hunting and gathering stage

Pastoral stage

Agriculture and handicraft stage.

For a long time man lived on the wild fruits and roots. He satisfied his need for food and clothing by picking fruits, by hunting and fishing.

Man invented tools and weapons ,made of stone, wood and metals like hammers , axes, draggers , knives and arrows to hunt and kill animals. He roamed about in small groups from place to place.

By hunting, they get food. But this was the uncertain way of getting food. Thus for many a time, they were left without food. This condition led him to store animals by catching them alive. Thus man started gathering animals.

The existence of pastoral stage was the result of hunting, gathering and storing animals. Water and grass, at least, was necessary to feed these animals. Man started roaming from place to place, with his cattle in search of grass and water.

The tribes, private property, precious stones,matals,food, clothing's animals and transportation were the main features of pastoral stage.

The man, who owned a large number of animals in his cattle, was said to be a rich and wealthy person.

Man found regular supply of water and vegetation near the river banks. He settled down there and learnt by nature, how to grow plants of food grains and fruits. Man learn how to grow crops.

In this stage, man was able to domesticate wild animals and to use them for agriculture and for transportation purpose.

In this way, villages came into being near river and lakes. These villages transform into famous cities after a long time. Examples: Mohenjo-Daro near Indus, Egypt near Nile and Bobbiliane near Euphrates and Tigris.

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The agriculture stage gave birth to the following economic concepts and motives. Division of Labour in tribes. Economy of feudal exchange. Industrial stage Private and public ownership

The cattle rearing and plant cultivation encouraged the tribal system and thus division of labour with different occupations existed rapidly.

The needs of Human beings increased day by day and the small production of handicraft was unable to meet them. People start establishing cottage industries.

The surplus production which they produce was exchange among themselves and fulfill their wants. The ploughs ,the sickles ,the axes and the spades were invented during this period.

People start leading settled and organized life by now. Industrial stage begins with family economy. The family units produce their consumption goods like pots tools, furniture, shoes ,clothes etc.

The handicraft system was introduce in industrial stage. People adopted particular professions like weaver, carpenter ,gold smith , potter etc. In this way, the remarkable development in production, consumption and exchange took place with the introduction of coins of gold and silver. The division of labour was improved during this period.

Domestic system followed by handicraft and family economic system gave birth to master- craftsmen, who opened small industries. They sold their production to the capitalists, who were responsible to sell those goods among the people. Monetary system was improved and government issued currency and coins as legal tenders. Banking system was also introduced.

Modern industrial system is the successor of domestic, cottage and small scale industry systems. The factory system, the machine age and the industrial revolution are different names of this system.

The main blessings of this stages are: modern machines, national and international marketing ,developed communication and transport, modern currency and banking systems ,telephone ,radio , TV, joint stock companies, stock exchange etc.

There are two ways of utilizing economic resources of a country. 1. Private Ownership/Capitalism All the productive resources are given to people to use them for production. All the big and small means of production are owned by private individuals and companies.

The capitalist ,sometimes influence over the Government, as they control all the means of production i.e. land, Labour, Capital and Organization. The Government does not interfere in their business provided they are lawful and harmful to the people and to the state.

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The factors of production are owned by private individuals for profit motive. The consumers are given due importance for the choice of liking and disliking due to which consumers enjoy buying better and cheaper goods. Free competition among producers and consumers in the market in the market is allowed. The poor people become poorer and the rich become richer due to the tendency of concentration of wealth in few hands.

The state remains master or owner of all the productive resources. In this system, resources are fully utilized for the welfare and prosperity of people, leaving profit motive aside.

Government control all the four factors of productions and run the economic activities of the country. The government plans to utilize the resources in such a way that all the needs of people are satisfied.

1. The factors of production is owned by state and utilized by the government. Production is not meant for profit motive. The liking and disliking of consumers are of no importance's. Private property ,professions ,business and productions are not allowed.