Can You Briefly Describe Definition Of Economics Given By Adam Smith?

Adam smith wrote a book in 1776 whose title was "Wealth of Nations". In his book he discussed the word 'wealth' through its four aspects: production of wealth, exchange of wealth, distribution of wealth and consumption of wealth. There fore it can be said according to Adam Smith: "Economics is a science of wealth". Wealth means goods and services transacted with the help of money. Lets discuss four aspects of wealth; first one is production of wealth it shows as to how goods and services are produced. Goods and services are produced by the combination of four factors of production i.e. land, labour, capital and organization.

Second aspect is exchange of wealth there are many procedures of goods and services in a society. Every procedure produces goods and services more than his personal requirement. The exchange of wealth enables everyone in the society to satisfy his multiple wants. Third aspect is distribution of wealth, which means the distribution of goods and services among different sections or individuals of a society. As known by explanation of exchange of wealth that procedures of goods and services exchange the surplus wealth with each other through out the year. The last and forth aspect is consumption of wealth that is using up the utility of goods and services for the satisfaction of wants is called the consumption of wealth.

According to Adam Smith "Economics was concerned with, An Enquiry into the Nature and Causes of Wealth of Nations."

As per definition of Adam Smith a key position was assigned to wealth in the study of Economics.

The first person who introduced "Economics" as a subject was Adam Smith (1723-1790). He wrote the first book in economics entitled the "wealth of nation" in 1976. In this book he considered economics as a subject in which we study production of wealth, distribution of wealth, consumption of wealth and exchange of wealth.

Production of wealth means the production of goods and services by combining four factors of production 1). Land: It is the natural resources such as Sea, Minerals, Live Stock and forest. 2). Labor: It is the mental or physical work, which is done for the sake of reward. 3). Capital: It means man made resources which help to produce goods and services.  4) Organization: It is the act of combing four factors of production to produce goods and services for the sake of profit. The production of wealth means production of goods and services.

After the completion of production process this wealth is distributed among the four factors of production for their performance. Rent is given to land, wages to labor, and interest to capital and profit to organization. When people get their share from the production, they use it to satisfy their wants. They spent their income to purchase of goods and services. The surplus goods and services are exchanged with other surplus goods and services for the satisfaction of wants.

Adam Smith was the first man who define economics . According to him economic can be define as  "economic is concern with the nation wealth " . Here  wealth means goods and services. It has four aspects 1. Production of wealth  2. Exchange of wealth  3. Distribution of wealth 4. Consumption  of   wealth

The very title of Adam Smith's classic " An Enquiry into the Nature and Causes of the Wealth of the Nations"  rendered economics as a study concerned with wealth or economic goods. The need for satisfying various wants with the help of these goods (consumption of  wealth) necessitates collaborative  efforts on the parts land owner, labourer, capital owner and organiser to produce  them(production of wealth) and share them as per their contribution to the collaborative  efforts ( distribution of wealth). Since people do not  necessarily have all they  are able to afford, they exchange the goods  amongst themselves either directly or through a common medium(exchange of wealth) to satisfy their wants. Thus, according to Adam Smith, economics can be defined as a study that deals with production, distribution, exchange and consumption of wealth.

Adam Smith was a professor of camerage university.in 1776 Adam Smith discover a book" the Wealth of Nations" and become a father of economics . In this book according to him wealth means "Goods and Services" and dervied a definition that is sciences of wealth. The main points of definition are as fellow.
Production of wealth.
Consumption of wealth.
Exchange of wealth.
Distribution of wealth.

According to Adam smith "Economics is an enquiry of nature and causes of wealth of nation". He also says Economics is the science of wealth.science provides ways and means of getting plentiful revenue to the state as well as more property to the people.he says that earning and spending of money denotes wealth

Adams definitions