If we want to define anything we must find out the class and group to which it belongs. Then we shall find out its distinguishing quality.
It is very difficult to give a definition of economics. Because economists are not of the same opinion as to the class to which it belongs and a special quality possessed by economics. As a result of this, in different periods of time, different definitions have been given about economics.
Examples of definitions of economics.
1. Adam Smith - 1776
In 1776 Mr. Adam Smith published his book, "An Enquiry into the Causes of Nations", and tried to give a definition of economics as a "Science of Wealth".
An object may be regarded as wealth if it possesses the following qualities.
a) Utility
b) Scarcity
c) Externality
d) Transferability
2) In 1890 Mr. Alfred Marshall published his book "Principles of Economics" and in this book he gave the definition of economics as,
"The study of mankind in the ordinary business of life."
According to Mr. Marshall economics deals only with those activities of man, which can be regarded as business activities. Economics does not deal either with the body or the mind of man.
3) Lionel Robbins - 1931
In 1931 Mr. Robbins published his book "The Nature and Significance of Economic Science".
In this book he defined economics as "a science, which deals with human behaviour as a relationship between ends and scarce means which have alternative uses."
If we analyze this definition we can point out the following features of economics.
1. Science : According to Mr. Robbins, economics is a science because the knowledge of economics is a systematic knowledge.
2. Human behaviour : This science of economics deals with the behaviour of man. In other words, it deals with the activities of man.
3. Ends : Economics deals only with those activities of man through which man tries to satisfy his economic wants.
The three fundamental economic wants of man are
a) Food
b) Clothing
c) Shelter
4. Means : In order to satisfy the economic wants, man uses the means available in the society. But these means are scarce. They are limited in supply.
From the above we find out that the fundamental ends of human activities is the satisfaction of economic wants.
5. Alternative uses : The means by which man tries to satisfy his economic wants are not only limited in supply but also have alternative uses.
Because of the alternative uses, there is a need of choice. Man must make the choice of the best use of the available resources. Hence choice is one of the fundamental problems of economics.
Criticism of Mr. Lionel Robbins' definition
This definition has been criticized by many modern economists on the following grounds.
1. According to Mr. Robbins, economics is a science. But according to the critics economics cannot be regarded only as a science. Because in that case we shall be missing the human touch that exists in economics.
2. According to Mr. Robbins economics deals with the problem of choice. But according to the critics every choice made by man cannot come within the scope of economics. The choice must have an effect on the society of man.
3. According to Mr. Robbins economics deals with the problem of scarcity. But according to the critics all the problems of economics are not the problems of scarcity.
4. The definition of economics does not include the other aspects of economics, such as welfare of man, determination of employment and income in the society and the stability and growth of the economy.
Conclusion : Though there are some criticisms against this definition, this definition is one of the most popular definitions of economics. Even today many economists are trying to define economics along the line of scarcity. Even Mr. Samuelson has also defined economics on the line of Mr. Robbins.
Subscribe to:
Post Comments (Atom)
Update(s):Post(s) under preparation: -
_______________________________________
View Chandra Bhanu's Art at Profoundfeeling.blogspot.com
_______________________________________
View Chandra Bhanu's Art at Profoundfeeling.blogspot.com
Labels
indifference curve
investment
demand-pull inflation
economy
fiscal policy
monetary policy
cost-push inflation
demand
demand for money
destabilized economy
economics
stagflation
supply of money
Opportunity Cost
Quantity Theory of Money
Theory of Consumption
World economy
automatic stabilizer
capital
choice
consumption function
current accounts deficit
deflationary gap
demand for investment
depression
derivation
effects of inflation
equilibrium
fiscal deficit
fresh investment
growth
imbalance
inflation
interest
money
perfect competition
savings
savings function
world
Accounting Profit
Adam Smith
Alfred Marshall
Diminishing Marginal Utility
Economic Profit
Equimarginal Utility
General Equilibrium Theory
IS Curve
J. M. Keynes
Keynes' Theory of employment
LM Curve
Lionel Robbins
Normal Profit
PPC
Production Possibility curve
Software system development
Utility Analysis
accelerator
account
accounting
alternative uses
autonomous investment
balance of payments
book keeping
capital goods
classical theory of the rate of interest
commodity
consumer
consumer goods
consumption
credit
debit
definition
deflation
discretionary
double entry
economic functions
economic wants
educated
education
ends
energy
ermployment
full employment
functions of money
growth rate
habit
imitation
imperfect competition
income
income analysis
income determination
income effect
induced investment
inflationary gap
investment function
knowledge
labour
less than full employment
liquidity preference theory
long run
long run equilibrium
means
monetary analysis
monetary measures
monopoly
multiplier
price
price effect
price maker
production possibility frontier
profit maximization
propensity
revealed preference analysis
sacrifice
say's Law
scarce
science
shifts of IS LM curves
short run
short run equilibrium
shut down conditions
slow down
society
stagnation
student
subsidies
subsidy
substitution effect
success
sunk capital
supply
supply of savings
technology
unproductive
wealth
world economy 2012
No comments:
Post a Comment
Want to say something? Say it!