Introduction

     There are  natural sciences  and  social sciences.  The natural science deals with  man’s  physical  environment  and it includes physics, chemistry, biology etc.  Social science  deals  with  man as a  member  of society,   and it  includes  history, politics, economics, ethics etc.  Economics is concerned with human  wants  and their  efforts  to satisfy the wants.

Origin  of Economics

              The term  Economics  originated from the Greek word 'Economia'  which  means  household.  The Greeks  applied term  to the management  of  city states  which  they called 'polis'. Economics  was considered as  part of  political  science in the early  days of  its  development.  It however  emerged  into a full fleged  science  after  the  publcation of Adam Smith's "An enquiry into the  nature and  causes of wealth of  Nations"  in the  year 1776.  The modern  ecnomists  perfected  and styled  it as  Economics.

         The starting  point  of all economic activity  is the  existence of human  wants to satisfy hunger  and  thirst, to  secure  shelter  and provide  clothing  were  the chief  aims of  primitive   man and constitute even today the   motive  force of all  society.  Thus,  wants  leads to effort, effort  leads to satisfaction and  thus forms   the  subject  matter  of economics.

        Primitive man had  limited  wants food, shelter  and clothing but as wants  increased  he came  to depend  more  and more on  the efforts of other people for his satisfaction.  Thus,  the  farmer exchange  his grain to  weaver's  cloth.  As exchanges  became  complex, our  common  medium of  exchange  called money  envolved. Thus, the farmer  sold  his grans for money and he purchased cloth  and other requirements.

      The  subject matter  of  economics  is divided into  four parts.

           i) Production

          ii) Distritbution

          iii) Exchange

           iv)Consumption

1. Production:

              Production covers the various  factors  of production, laws of supply, different forms of  business organisation etc.

2. Distribution:-

            Distribution brings  within  its   preview, national  income, the distribution among the factors  of production  in the forms of  result,  wages, interest and profit.

3. Exchange:-

      Exchange  constitutes values, banking,  market etc.

4. Consumption:-

         Consumption  deals with  human  wants and satisfaction,  the law of demand, etc.