Compare and contract various definition of economics
Answers
Marshall’s Definition
“Economics is the study of man in ordinary business of life. It enquires how he gets his income and here he uses it. It examines that part of individual and social action, which is most closely connected with the attainment and with the use of material requisites of well-being………………..It is the study of wealth on one side and on the other side, which is more important, it is a part of the study of man.”
Robbin’s Definition
“Economics is the science which studies human behaviour as a relationship between multiple ends and scarce means, which have alternative uses.”
A comparative study of both the definitions is made on the basis of their similarities and differences.
(a) SIMILARITIES
1. Human behaviour:
Both the definitions are concerned with human behaviour.
2. Optimization:
Both the definitions concentrate on optimization i.e. the best possible situation within given conditions. In Marshall’s definition, our aim is to maximize material welfare and in Robbin’s definition, we are concerned with maximization of satisfaction.
3. Basic pillars:
Consumption, production, exchange and distribution of wealth are the basic pillars of both the definitions.
4. Same characteristics of wealth and scarce resources:
According to Marshall, wealth is the basic source of maximization of material welfare. Robbins is of the opinion that we maximize our satisfaction by scarce resources. Both the concepts of wealth and scarce resources are synonymous as both have the same characteristics, i.e. utility, transferability and scarcity.
5. Analytical:
Marshall’s definition is based on the attainment and use of material requisites. Robbin’s definition is based on the problem of choice. Hence both the definitions are analytical in nature.
(b) DIFFERENCES
We observe the following dissimilarities between the two definitions.
1. Economic activity – material / immaterial:
v Marshall believes in only material activities which promote material welfare.
v Robbins believes in both material and immaterial activities to tackle the problem of choice.
2. Social science / natural science:
v For Marshall, Economics is a social science.
v On the other hands, Robbins is of the view that Economics is natural science like Physics, Chemistry etc.
3. Normative science / positive science:
v Marshall is of the opinion that in Economics, we not only consider the problems as they are but we also suggest that how the given problem should be tackled. It means according to Marshall, Economics is basically a normative science.
v Robbins thinks otherwise. He says that economists must be just neutral observers of economic events around them, ignoring their personal likings. They can talk of facts only. Hence Robbins believes that Economics is basically a positive science in which the economists describe the economics facts as they are.