Economics, a science of optimization for Scarce Resources ?

There has been a continuous revision of definitions for Economics on whether it is a positive science or a normative science. Whatever might be the definition, Economics is the subject of optimization and there is no denying that.


According to modern consensus on Economics, it is considered that every activity and everything in this world has a value, and can be valued. There are many ends, desires, and needs for everyone who is part of the economy. But, for a given resource, there is only limited means through we which we could achieve such an end or need. Hence, the subject matter of Economics becomes the examination of the rationalistic behavior of the participant in taking smart decision regarding the usage of a particular resource from those limited means. Further each resource has multiple uses each use has to be evaluated and studied according to the situation and the best possible choice for the utilization has to be chosen. Since wants are unlimited, and there are only very few fundamental ends for the wants, smart utilization of the resources is the requirement so as to keep the engine of Economy running, and the sustainability of the utilized goods becomes a means to generate further resources. If such result is to be achieved Economics has to deal with the allocation of those scarce resources – since they are limited in supply due to various reasons and have alternate uses – into appropriate development of Economy. Hence, the definition of Economy has to encompass it so as to focus its aim on furthering the optimization and development of Economy itself, and change the nature of subject. Hence, Economy can be described as study of allocation of scare resources having alternate uses.

Resources are rare, means are limited, but the ends are unlimited. How good is Economics, and its study for us ? Just a mad fight for Resources, and survival of the fittest ?



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