03-09-2012, 01:20 PM
BUSINESS ECONOMICS
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INTRODUCTION
Economics was formerly called political economy. The term Political economy
means the management of the wealth of the state. “Adam Smith, the father of modem
Economics, in his book entitled 'An Enquiry into the Nature and Causes of the Wealth of
Nations’ (Published in 1776) defined Economics as a study of wealth. Smith considered
the acquisition of wealth as the main objective of human activity. According to him the
subject matter of Economics is the study of how wealth is produced and consumed.
Smith's definition is known as wealth definition.