Question

Explain Samuelson’s definition of economics.

Answer 1

According to Samuelson, economics is the study of how individuals and society choose, with or without the use of money, to employ scarce productive resources that have alternative uses. It examines how these resources are used to produce various commodities over time and how these commodities are distributed for consumption both now and in the future among different people and groups in society. This definition emphasizes the role of choice in the allocation of scarce resources to satisfy human wants over time, highlighting both production and distribution aspects in economic study.