This section is from the book "Introduction To Economics", by Frank O'Hara. Also available from Amazon: Introduction To Economics.
The term law is used in several senses. For example, in jurisprudence it means a rule of conduct set up by a state for the guidance of its subjects. But in the sciences generally, where there is regularity in recurrence of phenomena we say there is scientific law. Where the phenomena which recur with regularity are economic phenomena, that is, where they have to do with man's relations to wealth, we have economic laws. For example, when men melt gold coins to secure bullion, they usually melt full-weight coins, in preference to coins which are much worn and therefore light. The regularity of such action is an economic law, and is of much consequence in economics.
It is sometimes urged that economic laws are not real laws because they are concerned with human actions and that since the will is free, there will not be sufficient regularity in these actions to permit them to be called laws. This contention, however, fails to take into account the meaning of economic laws. A person is not compelled to obey economic laws, but the motives which influence him in dealing with economic phenomena will usually lead him to act in accordance with economic laws. Thus, the man who melts gold coin to secure bullion is perfectly free to melt the lighter coins. But the motive of self-interest will usually lead him to melt full-weight coins.
The science of economics has to do with man in his relations to wealth. For convenience in discussing the subject, many writers divide the field of economics into four principal sections, namely, the consumption of wealth, the production of wealth, the exchange of wealth, and the distribution of wealth. Briefly expressed, the consumption of wealth means the using of wealth; the production of wealth means the bringing into existence of wealth; the exchange of wealth means the transferring of the ownership of wealth from one person to another in consideration of a corresponding transfer of ownership of other wealth from the latter to the former; and the distribution of wealth means the sharing of the wealth which has been produced among those who have claims to it. In the following chapters the four subjects will be treated in the order named. But before proceeding to a consideration of the consumption of wealth we shall take up in Chapter II (Economic Development. 8. The Economic Stages) a brief summary of economic history.
1. What is meant by economic activities?
2. What is wealth?
3. Define economics.
4. Enumerate ten different groups or classes of workers who have aided in supplying you with to-day's dinner.
5. Why do we say that economics is a social science?
6. Name some activity which is the subject matter of several different sciences. Of which sciences?
7. What other sciences are closely related to economics?
8. What is meant by an economic law?
9. Do economic laws conflict with the freedom of the will? Illustrate.
10. What are the four usual divisions of the field of economics?
Devas, Political Economy, Epilogue, Part I.
Ely, Outlines of Economics, Chap. i.
Johnson, Introductory Economics, Chap. i.
Keynes, Scope and Method of Political Economy, Chaps, ii. and iii.
Marshall, Principles of Economics, Book I.
Seligman, Principles of Economics, Chaps, i. and ii.
Taussig, Principles of Economics, Chap. i.
 
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