The definition "Science which deals with wealth of Nation" was given by
Options
AAlfred Marshall
BA C Pigou
CAdam Smith
DJ B Say
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Introduction to Business EconomicsMODULEQuestion 633 of 209
All Questions Correct Answer
✅ Option c — Adam Smith
All Options:
- AAlfred Marshall
- BA C Pigou
- CAdam Smith
- DJ B Say
Detailed Solution & Explanation
• The question asks to identify the economist who defined economics as the "science which deals with wealth of Nation." This is a fundamental concept in the history of economic thought.
• Adam Smith, often considered the "Father of Economics," is famously associated with this definition. His seminal work, "An Inquiry into the Nature and Causes of the Wealth of Nations" (published in 1776), laid the foundation for classical economics and focused heavily on how nations accumulate wealth. Therefore, option (C) is the correct answer.
• Alfred Marshall (Option A) is known for his definition of economics as the "study of mankind in the ordinary business of life," emphasizing human welfare and the study of wealth as a means to an end. His definition came much later than Smith's and broadened the scope beyond just wealth.
• A.C. Pigou (Option B) was a student of Marshall and focused on welfare economics, particularly the concept of economic welfare and its measurement. His work was also a departure from the sole focus on wealth.
• J.B. Say (Option D) was a French classical economist known for "Say's Law of Markets," which states that supply creates its own demand. While a classical economist, his primary definition of economics did not center solely on the "wealth of Nation" in the same foundational way as Adam Smith.
About This Chapter: Introduction to Business Economics
Paper
Paper 4: Business Economics
Weightage
5%
Key Topics
Meaning, Scope, Price Mechanism
This chapter lays the groundwork for understanding Business Economics as a discipline. It covers the meaning, scope, and nature of economics — including key distinctions like Microeconomics vs Macroeconomics, Positive vs Normative economics, and the fundamental economic problem of scarcity. Students learn how businesses use economic principles for decision-making in a competitive marketplace.
View Official ICAI SyllabusExam Strategy Tip
Focus on definitions and distinctions between concepts. Questions often test whether you understand the difference between Micro and Macro, or Positive and Normative statements.
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