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Economics in Law
Law is a discipline
which comes in social science. It is a study of system of rules that are
enforced through social institutions. Similarly, Economics is also a discipline of social
science which is concerned
with the proper utilization and allocation of resources for the achievement and
maintenance of growth with stability.
Crafting policies, rules, regulations and establishing institutions by
legislative bodies are for the welfare of a society. Similarly economic system plays
a pivotal role in managing the scarce resources in proper manner. In context of
various social aspects knowledge of Economics is equally important for law
students and professionals; that is the reason economics has been made part of
law curriculum in various universities.
Therefore, this repository of notes (handouts)
has been designed for all those law students who usually face problems of
incomplete handouts or unavailability of notes during their preparations of exam.
This site aims to provide an online downloading facility of all lectures regarding
above cited course and to facilitate ease in learning process.
For queries contact on
email: st404assign@gmail.com
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LECTURE : 01
INTRODUCTION TO ECONOMICS
History and Scope
The word Economics is derived from the Greek words ‘Oikos’ means house and ‘Nomos’ means custom or laws. So it means management of a household especially in those matters which are relating to the income and expenses of the family.
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| Adam Smith (1723-1790) |
According to A.J. Brown, “An economy is a system by which people get living” or it is a framework where all economic activities are carried out.
It is a way through country’s resources are owned and the way that country takes decisions as to what to produce, how much to produce and how to distribute what has been produced determine the type of economic system that particular country practices.
Marshall’s Definition
“Political Economy or Economics is a study of mankind in the ordinary business of life; it examines that part of individual and social action which is most closely connected with the attainment and with the use of the material requisites of well being”
Robbin’s Definition
“Economics is the science which studies human behaviour as a relationship between ends and scarce means which have alternative users”
J.M. Keynes’s Definition (Modern)
“The study of the administration of scarce resources and of the determinants of income and employment”
Economics in Law Curriculum:
Law is a discipline which comes in social science. It is a study of system of rules that are enforced through social institutions. Similarly, Economics is also a discipline of social science which is concerned with the proper utilization and allocation of resources for the achievement and maintenance of growth with stability. Crafting policies, rules, regulations and establishing institutions by legislative bodies are for the welfare of a society. Similarly economic system plays a pivotal role in managing the scarce resources in proper manner. In context of various social aspects knowledge of Economics is equally important for law students/professionals.
How Law is related to Economics?
Legal constraints on the allocation, distribution of resources, on labour and housing markets affects the economic activities in the market. These aspects have become vital in the globalization of the economy and revival of the markets with privatization as the focal point. Prof Paul Burrow said that, “Economics and Law can provide insights in places where traditional legal analysis fails to penetrate”.
If the problem of the economist is to determine what has been, what is, and what ought to be the governing principles in "wealth-getting and wealth-using";' if "economics is a study of men as they live and move and think in the ordinary business of life"" it would seem that past and existing legal systems constitute material of prime importance deserving to be considered extensively and critically.
Some Examples:
Readings: Fundamentals of Economics by Habibullah Vaseer (For Concept Building)
Modern Economic Theory by K. K. Dewett (For in-depth understanding)
SCHOOLS OF THOUGHT IN ECONOMICS
There is no one single definition of economics on which all economists has agreed; therefore, after examining various definitions, economists have divided economics into three major groups;
1. Classical View (Science of Wealth)
Classical economics (also known as liberal economics) asserts that markets function best with minimal government interference. It focuses on production, consumption, distribution and exchange of wealth.
2. Neo Classical View (Science of Welfare)
Neoclassical economics is a set of solutions to economics focusing on the determination of goods, outputs, and income distributions in markets through supply and demand.
3. Modern View (Science of Scarcity)
It is based on three fundamental facts:
• Ends are unlimited
• Means are limited
• Means can be put to alternative uses
