1.4 ndian onom
on many internal and external factors, the results picture, its essence has been very simple—the
are likely to have diversities. The level and quality betterment of human life on earth. Improving
of natural resources, the quantity and quality of living conditions of the humanity at large has
human resources, the socio-political milieu, the been the real and ultimate goal of the discipline.
historical background, the psychic make of the In this process, economists have been articulating
human resource, etc., are some of the factors a number of theories and propositions as to how
which individually as well as collectively impact an an economy may maximise its economic potential
economy while carrying out economic activities. and worth. The first and the most famous work
These things make it highly difficult for economists in this direction was by the Scottish philosopher-
to forecast the kind of impact a particular economic economist, Adam Smith in The Wealth of Nations
policy will have on a particular economic setting. (1776). One can trace the origin of the classical
Ultimately, implementation and delivery systems school of economics to this work. Similarly, in the
also play a highly vital role in solving economic following years and centuries, many outstanding
challenges in a country, which economists started works were produced by many great economists
studying after the 1960s. Therefore, it is correct who were trying to improvise better ways of
to say that economics has less diversity than the maximising the fruits of economic activity.
economies. There will not be any exaggeration Economics and the economists have a common
if we say that no two economies of the world goal, i.e., searching for possible alternatives for the
are exactly the same, though we might classify betterment of human life.
them into broader categories like developed and
developing, agrarian and industrial, etc. chAllenges of the economies
This diversity makes economics a highly The main challenge of any economy is to fulfil the
interesting discipline. It is through these diverse needs of its population. Every population needs
facts of the economies that economists have been to be supplied with some goods and services for
able to modify and remodify their ideas on the its survival and well-being. These goods might
subject of economics. The evolutionary history of include basic needs such as food, shelter, garments,
economics is nothing but modifications in the past etc., while it might also consist of refrigerators,
theories on the basis of contemporary results and air conditioners, cars, medicines, computers, etc.
experiences of the economies. It will be correct Similarly, the services people need may range
to say that economics has developed out of real from healthcare, drinking water supply, education
life practices and especially from the evolution of to advanced and highly sophisticated services
practice into theory. As practices will be having like banking, insurance, airways, telephones,
newer dimensions, the theories of economics will internet, etc. As an economy moves up the ladder
also have newer and more imaginative dimensions. of development, the process of fulfilling the
needs of the population becomes a never-ending
the focus of economics phenomenon. As an economy achieves success
What is the real purpose of studying economics? in supplying one set of goods and services to its
What have economists ultimately been trying population, the population starts demanding
to articulate? And what has been the focus of another set of goods and services, which are of a
economics and the economists since the birth of higher order. And thus goes on the struggle of the
the discipline? economy—solving one challenge and focusing
Though economics today studies a wide on another. The standard of living of one set of
range of issues and topics, if we take an overall population varies from another depending upon