"economics is the study of material welfare". explain.
Answers
Answer:
Thus Marshall incorporated in his definition that economics “examines that part of individual and social action which is most closely connected with attainment and with the use of the material requisites of well-being.” It is the phrase material requisites of well- being that stands for material welfare.
Explanation:
Follo w me
Explanation:
Alfred Marshall was the first economist to set at rest the criticisms of wealth definitions. He emphasised that man is not for wealth but wealth is for man. The view of Prof. Marshall was supported by Prof. Pigou, Cannon and Clark, etc.
According to Him:
“Economics is a study of mankind is the ordinary business of life. It examines that part of social action which is most closely connected with the attainment and with the use of material requisites of wellbeing.”
On the basis of above definition, it can be concluded that according to Prof. Marshall Economics is the study of material welfare of mankind.
Salient Features of Welfare Definitions:
1. Economics is the Study of Ordinary Business of Life:
Economics is the study of ordinary business of life. Ordinary business of life relates to those activities which are performed by an ordinary man for earning and using his income.
2. Economics is a Social Science:
Economics is a social science. It studies the economic problems of those individuals only who live in a well organised society.
3. Economics Studies only the Economic Activities:
Economics studies only those economic activities that promote material welfare of human being. Thus, non- economic activities are not included in the scope of economics.
4. Dominance of Man:
Welfare definitions have emphasised upon the importance of man. According to Prof. Marshall, man is not for wealth, wealth is for man. According to him, wealth is only a means and not an end. End is human welfare.
5. Economics is Both a Science and an Art:
According to Prof. Marshall, economics is a science as well as an art. Economics is a positive science because it studies the principles of human life in a systematic manner. It is a normative science also because it attempts at attaining material welfare. It is an art also because it develops the methods of attaining human welfare.
Criticisms of Welfare Definitions:
For a long time, welfare definitions of economics were accepted without criticisms and it was being felt that the problem of defining economics has come to an end. But this situation could not continue forever. In 1932, Prof. Lionel Robbins broke new grounds in defining economics in his book‘The Nature and Significance of Economic Science’.
Some of the important criticisms of welfare definitions are as follows:
1. The Classification of Human Activities into Economic and Non-Economic is Impracticable:
Welfare definitions classify human activities into economic and non- economic. Prof. Robbins was of the view that such distinction of human activities is illusory and impracticable because all human activities have an economic aspect.
2. The Classification of Material and Immaterial Welfare is Impracticable:
According to welfare definitions, economics is the science of material welfare. Prof. Robbins criticised this view on the ground that it is wrong to differentiate between material and immaterial welfare. He was of the view that human welfare is associated with both the material and immaterial means of welfare.
3. Economics is a Human Science, and not only a Social Science:
According to Prof. Marshall, economics is only a social science but the critics are of the view that it is a human science also not only a social science. Many laws of economics apply on those people also who do not live in well-organised society.
4. Illusory Meaning of Ordinary Business of Life:
According to Prof. Robbins, human activities cannot be classified as ordinary and extraordinary. Secondly, the study of economics cannot be confined to ordinary business of the life only because the activities of extra-ordinary business of life such as war, monopoly, imperfect competition etc., are essentially the subject matter of economics.
5. Welfare Definitions make Economics a Normative Science:
Prof. Robbins criticised welfare definitions on the ground that these definitions have made economics a normative science. He believed that it is not proper to relate economics with welfare. He remarked, “Whatever economics is concerned with, it is not concerned with the causes of material welfare as such.” According to him, economics is a positive science.
6. Narrow Scope of Economics:
Prof. Robbins criticised welfare definitions on the ground that these definitions have narrowed the scope of economics by excluding non-economic, immaterial and unsocial activities.