Economics: The Study of Us

*A market trader in Kota Bharu, Malaysia. Flickr Creative Commons photo courtesy [**jamesmellor**](http://www.flickr.com/photos/kissmyface/100217318/).* *Paul Solman answers questions from NewsHour viewers and web users on business and economic news here on his [**Making Sen$e**](http://www.pbs.org/newshour/economy/makingsense/) page. Here's Tuesday's query:* **Name: Christian Kontoh** **Question:** In your own words, explain economics how you understand it and with practical example in the expression. **Paul Solman:** These words aren't my own. Would that they were. They come from English economist [**Alfred Marshall**](http://www.econlib.org/library/Enc/bios/Marshall.html), the teacher of [**John Maynard Keynes**](http://www.pbs.org/newshour/businessdesk/2011/04/keynes-vs-hayek-round-2.html), who wrote the first "modern" economics textbook in 1890, "[**Principles of Economics**](http://www.firstprinciplesjournal.com/articles.aspx?article=1011&loc=r)." I used his quote at the start of a course I've been teaching on political economy at my alma mater, Brandeis University. I repeat the definition at the start of almost every class: > "a study of mankind in the ordinary business of life; [economics] 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. Thus it is on one side a study of wealth; and on the other, and more important side, a part of the study of man." *British economist Alfred Marshall in 1921. Photographer unknown. Photo part of the public domain and via Wikimedia Commons.* *This entry is cross-posted on the [**Rundown**](http://www.pbs.org/newshour/rundown/)- NewsHour's blog of news and insight. [**Follow Paul on Twitter.**](http://twitter.com/paulsolman)*