The Evolution of Economics Definitions: A Pedagogical Approach for Modern Classrooms

The Evolution of Economics Definitions: A Pedagogical Approach for Modern Classrooms

Mohit Jain

Research Scholar, Adamas University, Kolkata

DOI: https://doi.org/10.51584/IJRIAS.2025.100800150

Received: 06 September 2025; Accepted: 12 September 2025; Published: 26 September 2025

ABSTRACT

This paper examines the evolution of economic thought through the lens of its key definitions, tracing the journey from Adam Smith’s focus on wealth to Paul Samuelson’s comprehensive approach encompassing growth, resource allocation, and societal welfare. It explores how these definitions mirror shifting societal priorities and challenges over time. The study introduces a storytelling approach to pedagogy, proposing it as an effective means to engage students and deepen their understanding of economics. By connecting abstract concepts to practical, real-world scenarios, storytelling fosters active participation and critical thinking, making economics more relatable and accessible.

The methodology involves a qualitative analysis of how storytelling can be integrated into teaching economics, with comparisons to traditional textbook-based methods. Historical definitions are used as anchors within narratives, enabling students to critically evaluate the contributions and limitations of prominent economists. For instance, Adam Smith’s “science of wealth” is contextualized through discussions on personal budgeting, while Robbins’ scarcity-focused definition is illustrated with examples of limited resources and their alternative uses.

Findings suggest that storytelling not only demystifies complex concepts but also encourages an appreciation for the discipline’s evolution and relevance in addressing contemporary issues. The paper highlights the gaps in traditional definitions, such as the neglect of immaterial resources and limited integration of sustainability and equity, and emphasizes the potential of narrative-based pedagogy to fill these voids. This approach serves as a bridge between theoretical constructs and practical applications, preparing students to navigate and address modern economic challenges effectively.

Keywords: economic thought, teaching method, storytelling pedagogy, active participation, innovation

INTRODUCTION

The study of economics has long been central to understanding human behaviour, societal development, and resource management. As the discipline has evolved, so too have its definitions, reflecting the shifting priorities and challenges of different eras. From Adam Smith’s early focus on wealth production to Paul Samuelson’s comprehensive inclusion of growth and societal welfare, these definitions offer a window into the historical contexts that shaped them. However, the way economics is taught often fails to capture the richness of its theoretical evolution, relying instead on static textbook definitions. This paper argues that integrating a storytelling approach into economics pedagogy can make abstract concepts more relatable, enhance critical thinking, and inspire students to explore the discipline’s relevance to contemporary issues.

Economics, at its core, is a social science concerned with the allocation of scarce resources to meet human wants. Adam Smith (1776) famously defined economics as “the science of wealth,” focusing on production and accumulation. While revolutionary in its time, this definition has since been criticized for neglecting key aspects like welfare and income distribution. Later, David Ricardo (1817) expanded the discourse by emphasizing wealth distribution among different societal classes, yet his ideas too fell short of addressing human welfare comprehensively. These early definitions, though foundational, represent a narrow view of economic activity, often detached from the lived experiences of individuals.

The 19th and 20th centuries brought significant advancements in economic thought. Alfred Marshall (1890) reoriented economics toward human welfare, describing it as the study of “mankind in the ordinary business of life.” This human-centric perspective marked a shift from the material focus of earlier economists, yet it still struggled to address issues like immaterial resources and sustainability. Lionel Robbins (1932) introduced a more formal definition, framing economics as the study of “human behaviour as a relationship between ends and scarce means which have alternative uses.” This scarcity-oriented approach became a cornerstone of modern economics but left out crucial aspects such as growth, development, and social equity. Finally, Paul Samuelson (1948) offered a more holistic view, integrating elements of welfare, resource allocation, and long-term growth, thus providing a robust framework for contemporary economic analysis.

While these definitions collectively capture the evolution of economic thought, they also highlight significant gaps. Traditional frameworks often ignore immaterial resources, such as services, and their growing importance in modern economies (Stiglitz, Sen, & Fitoussi, 2009). Moreover, issues like environmental sustainability and social equity remain underemphasized, despite their critical relevance in addressing global challenges (Raworth, 2018). Pedagogically, the static presentation of these definitions in classrooms risks alienating students, as it fails to convey the dynamic and contested nature of economic theory.

Storytelling offers a promising alternative. Rooted in the human tradition of sharing knowledge through narratives, storytelling can make abstract economic concepts accessible and engaging. Studies in education have shown that narrative-based teaching fosters deeper comprehension, retention, and critical thinking (Egan, 1989; Heath, 2007). By contextualizing economic definitions within relatable stories, educators can bridge the gap between theory and practice, helping students see the relevance of economics in their everyday lives. For instance, Adam Smith’s “science of wealth” can be explored through the story of a small business owner navigating production and sales, while Robbins’ emphasis on scarcity can be illustrated through a family budgeting exercise.

This paper explores the potential of storytelling as a pedagogical strategy for teaching the evolution of economic thought. Using a qualitative approach, it examines how storytelling can transform the classroom experience, making abstract definitions tangible and inspiring students to engage critically with the discipline. It also highlights the limitations of traditional textbook-based teaching methods, advocating for a more dynamic and interactive approach to economics education.

The objectives of this study are twofold. First, it aims to demonstrate how historical definitions of economics can be taught more effectively through storytelling. Second, it seeks to identify the broader implications of this approach for fostering a deeper appreciation of the discipline among students. In doing so, this paper contributes to the growing literature on innovative teaching strategies in economics, offering insights for educators and curriculum designers alike.

As the world grapples with complex economic challenges—from climate change to income inequality—the need for a nuanced understanding of economic principles has never been greater. By revisiting the evolution of economic thought through a storytelling pedagogy, this paper aims to equip students with the tools they need to navigate these challenges, fostering a generation of critical thinkers and informed decision-makers.

LITERATURE REVIEW

This section provides a thematic synthesis of the existing body of literature on the evolution of economics definitions and pedagogical strategies for teaching economics, as derived from an extensive review of hundreds of scholarly papers, books, and articles. Using VOSviewer  to map the co-occurrence of keywords and cluster related themes, the analysis identifies five dominant themes:

Evolution of Economic Definitions

The progression of economic thought is marked by continuous redefinition, reflecting evolving societal priorities. Classic works, such as Smith’s The Wealth of Nations (1776), laid the foundation by defining economics as the “science of wealth,” prioritizing production and accumulation. Ricardo’s Principles of Political Economy and Taxation (1817) further emphasized distribution but remained production-centric. Marshall (1890) shifted focus to human welfare, defining economics as “a study of mankind in the ordinary business of life.” Robbins (1932) introduced a scarcity framework, linking human behaviour to finite resources, while Samuelson (1948) integrated welfare, growth, and resource allocation into a modern synthesis. Recent critiques, such as those by Stiglitz et al. (2009) and Raworth (2018), argue that these definitions inadequately address sustainability and equity. Studies highlight the growing need to incorporate contemporary challenges such as climate change, digital transformation, and globalization into economic definitions (Dasgupta, 2024). This thematic cluster underscores the dynamism of economic thought and the challenges of creating a universally accepted definition.

Pedagogical Approaches in Economics

Traditional economics education relies heavily on textbook-based instruction, which often presents definitions as static and unchallenged truths (Colander, 2000). While this method provides structure, it is criticized for failing to engage students or encourage critical thinking. Becker and Watts (2001) emphasized the need for active learning strategies to improve comprehension, arguing that traditional methods alienate students by reducing economics to a set of abstract formulas and theories. Alternative approaches, such as problem-based learning (PBL), case studies, and simulations, have been explored in recent years (Mamoon, 2017). These methods align with constructivist theories of learning, which advocate for knowledge construction through active engagement and real-world application.

Storytelling as a Pedagogical Tool

The potential of storytelling to transform economics education has gained increasing attention. Egan (1986) posited that storytelling enhances comprehension by organizing complex information into relatable narratives. More recent studies (Heath & Heath, 2007; Shiller, 2019) demonstrate how stories make abstract concepts memorable by linking them to human experiences. In economics education, storytelling has been used to illustrate historical milestones, ethical dilemmas, and real-world applications (McCloskey, 1990). For example, Shiller’s Narrative Economics (2019) emphasizes the role of stories in shaping economic behaviour and policy. Such findings suggest that storytelling not only enhances engagement but also fosters a deeper appreciation for the discipline’s relevance.

Gaps in Traditional Economics Education

Despite advancements in pedagogy, significant gaps remain. Many frameworks fail to address interdisciplinary integration, such as the interplay between economics and environmental science or sociology (Nelson, 1995). Moreover, issues of diversity and inclusion are often overlooked in traditional curricula (Basu, 2018). Studies by Krugman (1998) and Colander (2000) argue that economics education focuses too heavily on mathematical rigor, neglecting critical thinking and real-world application. This narrow focus risks alienating students who might otherwise be drawn to the subject for its potential to address societal challenges.

Emerging Trends in Economics Teaching

Emerging trends point toward a more holistic and inclusive approach to economics education. The incorporation of technology, such as gamification and digital simulations, is gaining traction as a way to engage digital-native students (Andreozzi, 2010). Additionally, the integration of sustainability and ethics into economics curricula reflects a growing awareness of global challenges (Dasgupta, 2024; Raworth, 2018). Collaborative learning methods, such as peer teaching and group projects, are also being explored to foster a sense of community and shared inquiry (Ostrom, 1990). These approaches align with the United Nations’ Sustainable Development Goals (SDGs), emphasizing education as a tool for social change.

The literature reveals a rich and evolving discourse on both the content and pedagogy of economics education. While historical definitions of economics provide a foundation for understanding the discipline, their presentation in classrooms often fails to engage students or reflect contemporary challenges. Storytelling emerges as a promising pedagogical strategy, capable of bridging theoretical concepts with real-world applications. However, addressing the gaps in traditional frameworks will require a broader, more interdisciplinary approach, incorporating technology, sustainability, and diversity into the economics curriculum. These findings underscore the need for continued innovation in economics education to prepare students for the complexities of the 21st century.

Research Gaps

Despite the evolution of economic definitions, certain gaps remain unaddressed. One notable gap is the neglect of immaterial resources, such as services, and their significant economic impact. Additionally, traditional frameworks often fail to integrate environmental sustainability and social equity, which are increasingly critical in contemporary economic discourse. Furthermore, there is a lack of emphasis on pedagogical strategies that make these definitions relatable and engaging for students, limiting their accessibility and practical application in educational settings.

Research Questions

1. How do historical definitions of economics influence modern teaching?
2. Can storytelling improve the comprehension of abstract economic concepts?

RESEARCH METHODOLOGY

This study adopts a qualitative, exploratory approach to investigate how storytelling can be employed to teach the evolution of economics definitions in a way that enhances comprehension, engagement, and critical thinking among students. The research methodology is structured into four stages:

Stage 1: Literature Mapping and Thematic Analysis

The initial stage involved a systematic review of academic literature to map the evolution of economics definitions and identify trends in pedagogical approaches. The process followed the PRISMA[1] framework (Moher, Liberati, Tetzlaff, & PRISMI Group, 2009).

• Database Selection: Scholarly articles, books, and conference proceedings were retrieved from databases such as JSTOR, Scopus, and Google Scholar. Search terms included “economics definitions,” “pedagogy in economics,” “storytelling in education,” and “teaching economics through narratives.”
• Bibliometric Analysis: VOSviewer was used to generate keyword co-occurrence networks, enabling the identification of dominant themes such as “evolution of definitions,” “active learning,” and “engagement through storytelling” (Van Eck & Waltman, 2010).
• Thematic Synthesis: The clustering of keywords informed the development of research themes that guided subsequent stages.

This stage ensured that the methodology was rooted in a robust theoretical foundation, addressing gaps in previous studies.

Stage 2: Case Study Design

The study employed a case study design to explore the practical application of storytelling in economics education. Case studies were selected based on relevance and representativeness (Yin, 2009).

• Participants: The study was conducted in a high school economics class (Grade 11), comprising 35 students[2] from diverse socioeconomic backgrounds (Ref. Table: 1). A purposive sampling method was used to ensure the sample represented a range of prior and non-prior exposure to economics education.

Table 1 Demographic Characteristics of the Sample (N = 35)

• Content Design: Historical milestones in economics definitions—from Adam Smith to Paul Samuelson—were chosen as focal points. Each definition was paired with a narrative or real-life example to make the concept relatable. For example:

• Adam Smith’s “science of wealth” was illustrated through a story about a merchant navigating trade and wealth accumulation.
• Lionel Robbins’ scarcity framework was contextualized using an everyday scenario of resource allocation in a family setting.

Stage 3: Implementation of Storytelling Pedagogy

The storytelling approach was implemented over a four-week teaching module. The pedagogical process was guided by the narrative framework proposed by (Egan, 1989), emphasizing emotional engagement, structured storytelling, and thematic continuity.

• Narrative Structure: Stories were designed to follow the classical narrative arc (exposition, rising action, climax, falling action, resolution) to maintain student interest (Heath, 2007).
• Interactive Techniques: Each session included storytelling, followed by discussions, group activities, and reflective journaling to encourage critical thinking and peer learning (Shiller, 2019).
• Multimedia Tools: Visual aids, such as animated videos and infographics, were incorporated to complement storytelling and cater to different learning styles (Mayer & Moreno, 2002).

Stage 4: Comparative Evaluation

To assess the effectiveness of the storytelling pedagogy, a mixed-methods evaluation was conducted, comparing it with traditional textbook-based teaching methods.

• Quantitative Assessment: Pre- and post-module tests were administered to measure knowledge retention and conceptual understanding. Questions covered both factual knowledge (e.g., definitions of economics) and application-based scenarios.
• Qualitative Feedback: Semi-structured interviews and focus group discussions were conducted with students and teachers to gather insights into their experiences with the storytelling approach. Sample questions included:

• “How did the stories help you understand the concepts better?”
• “What challenges did you face while engaging with this teaching method?”

• Observation Notes: Classroom interactions were observed, and field notes were recorded to capture student engagement, participation, and interest levels.

Data Analysis

• Quantitative Data: Test scores were analyzed using paired t-tests to evaluate statistically significant differences in learning outcomes between the two pedagogical approaches (Field, 2013).
• Qualitative Data: Interview transcripts and observation notes were coded thematically using NVivo software. Emergent themes included “enhanced engagement,” “relatability of abstract concepts,” and “peer collaboration.”
• Triangulation: Findings from different data sources were triangulated to ensure validity and reliability (Denzin, 2017).

Ethical Consideration

The study adhered to ethical guidelines to ensure the well-being and rights of participants:

• Informed consent was obtained from students and their guardians.
• Anonymity and confidentiality were maintained in data reporting.
• Approval for the research was secured from the institutional ethics committee.

Conclusion

The research methodology employed in this study integrates a robust theoretical foundation, a practical case study approach, and rigorous evaluation techniques. By combining bibliometric analysis, storytelling pedagogy, and mixed-methods assessment, the study provides a comprehensive framework for exploring the potential of narratives in teaching economics. Future research could expand this methodology to include longitudinal studies or explore its applicability in other disciplines.

Analysis

This section presents the findings from the storytelling pedagogy intervention, comparing its effectiveness with traditional textbook-based teaching. The analysis integrates both quantitative and qualitative data to provide a holistic understanding of the outcomes.

Quantitative Analysis

Pre- and Post-Module Test Scores

A paired t-test was conducted to compare students’ test scores before and after the teaching module. The results indicate a significant improvement in learning outcomes for students exposed to the storytelling pedagogy.

Table 2 Pre- and Post-Test Scores

• Statistical Significance: A paired t-test showed that the improvement in test scores for the storytelling group was statistically significant (t(34) = 8.42, p < 0.001), compared to the textbook group (t(34) = 4.15, p < 0.01).
• Interpretation: The results suggest that storytelling pedagogy significantly enhances students’ understanding and retention of economic concepts.

Conceptual Understanding

The storytelling group demonstrated higher comprehension of abstract economic concepts. For example, 86% of students correctly identified the implications of scarcity as defined by Lionel Robbins, compared to 65% in the textbook group (Ref. Table: 3)

Table 3 Comparison of Conceptual Understanding

Qualitative Analysis

Thematic Coding

Interviews and focus group discussions revealed several emergent themes, highlighting students’ experiences with the storytelling approach (Ref. Table: 4)

Table 4 Emergent Themes from Qualitative Data

Classroom Observations

Observation notes highlighted notable differences in student engagement and participation during sessions.

• Storytelling Pedagogy: Students were highly engaged, asking questions, and offering their own interpretations of the narratives. Collaborative activities, such as small group discussions, fostered active participation.
• Textbook-Based Method: While students completed assigned readings and tasks, engagement was relatively passive, with fewer questions and limited peer interaction.

Figure 1 Comparison of Engagement Levels

Case Study Examples

Storytelling with Adam Smith’s “Science of Wealth”

A narrative about a fictional merchant navigating trade and wealth accumulation was used to illustrate Adam Smith’s definition of economics. Students were asked to analyze the merchant’s decisions and discuss their impact on wealth generation.

• Learning Outcome: 91% of students could explain Smith’s emphasis on wealth creation and its relevance to modern economics.
• Student Feedback: “The merchant’s story helped me understand why wealth matters but also why it’s not the only thing in economics.”

Explaining Robbin’s Scarcity Framework

The concept of scarcity was explained through a story about a family managing their limited resources. Students reflected on how the family prioritized their needs and evaluated alternative uses of resources.

• Learning Outcome: 87% of students correctly identified the implications of scarcity in their reflective essays.
• Student Feedback: “I never thought about how scarcity affects everything we do, from small decisions to big economic policies.”

Comparative Effectiveness

Knowledge Retention

Retention rates were measured three weeks after the module (Ref. Table: 5)

Table 5 Knowledge Retention Rates

Emotional Engagement

Students in the storytelling group reported higher emotional engagement, which correlates with better long-term retention (Heath, 2007). 93% of storytelling group students rated the sessions as “highly engaging,” compared to 71% in the textbook group.

Triangulation of Findings

To ensure validity, findings from test scores, qualitative feedback, and observation notes were triangulated. All data sources consistently supported the conclusion that storytelling pedagogy enhances engagement, comprehension, and critical thinking.

Conclusion of Analysis

The analysis reveals that storytelling pedagogy is a highly effective approach to teaching economic definitions, fostering deeper understanding, greater engagement, and improved retention. These findings support the potential of narrative-based teaching methods to address the limitations of traditional textbook-based approaches.

Challenges and Limitations of the Study

The storytelling approach, while innovative and effective in many respects, posed several challenges that educators had to navigate. One of the most prominent hurdles was the time-intensive nature of designing and delivering narratives. Unlike textbook-based teaching, where content is predefined and structured, storytelling required teachers to invest significant effort in crafting relatable and engaging narratives tailored to the subject matter. This added preparation time, though beneficial for student engagement, was a substantial demand on educators’ schedules (Beauchamp, Adams, & Smith, 2022). Furthermore, sustaining the storytelling approach over an extended period necessitated continuous creativity, which could lead to educator fatigue, particularly in resource-constrained academic environments (Kangas, 2010).

Another challenge stemmed from the diverse learning preferences among students. While the majority responded positively to storytelling, a notable minority, approximately 12%, expressed a preference for traditional textbook-based learning methods. These students cited their inclination toward structured content delivery and the clarity of textbook frameworks, which they found more conducive to their learning styles (Kolb & Kolb, 2005). This divergence in preferences underscores the need for hybrid pedagogical models that can cater to varying learner needs, combining the narrative appeal of storytelling with the systematic approach of textbooks. Future research might explore strategies to integrate these methods, balancing engagement with structure to maximize the benefits for all students (Babu, Mathew, Raju, Dhull, & Mohanty, 2024).

CONCLUSION

The evolution of economic thought demonstrates not only the shifting priorities of society but also the complexity of teaching these ideas in a way that resonates with students. This study has shown that storytelling can play a pivotal role in bridging this gap. By embedding classical definitions of economics within narratives—whether through the story of a merchant illustrating Adam Smith’s focus on wealth, or a family budget capturing Robbins’ concept of scarcity—students were able to connect abstract theories to tangible experiences. This connection fostered both cognitive and emotional engagement, which translated into deeper comprehension and stronger long-term retention.

Compared to traditional textbook-based instruction, storytelling encouraged students to ask questions, draw personal parallels, and critically analyze economic concepts in ways that felt meaningful. Quantitative results confirmed significant improvements in test scores, while qualitative feedback revealed higher levels of enthusiasm, relatability, and perceived utility of economics in everyday life. These findings suggest that storytelling not only demystifies complex theories but also transforms economics from a static subject into a dynamic lens through which students can interpret the world around them.

The implications extend beyond classroom performance. A narrative-based pedagogy nurtures critical thinking, empathy, and the ability to apply economic reasoning to real-world challenges such as sustainability, inequality, and decision-making under scarcity. In this way, storytelling serves as more than a teaching technique; it is a pathway to cultivating informed, reflective, and socially responsible learners.

Future research could broaden this exploration by examining storytelling’s long-term impact across diverse educational contexts, its integration with digital tools, and its effectiveness in other social science disciplines. Nonetheless, the evidence presented here affirms that storytelling is not merely an engaging supplement but a transformative strategy capable of enhancing comprehension, fostering curiosity, and preparing students to navigate the complexities of modern economics with confidence and creativity.

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FOOTNOTES

[1] PRISMA – Preferred Reporting Items for Systematic Reviews and Meta-Analyses

[2] The rationale for selecting a sample size of 35 students was based on practical and methodological considerations, including the need to maintain a manageable group size for meaningful interactions and qualitative data collection through observations and focus group discussions (Creswell & D., 2017). Additionally, this number reflects a typical classroom size, ensuring the findings are relatable to real-world teaching scenarios while balancing statistical validity with resource feasibility (Mertens, 2019).