State the four main points of Marshall's definition of economics?
Answers
Characteristics Of Marshall’s Definition
Greater Emphasis on Human Aspect
Marshall has given a balanced importance to Means and Ends, through his definition. He has stated in clear words, that it is on one hand is the study of wealth and on the other hand, more important to this is the study of human aspect. In this way, he removed the defect of ignorance of human aspect, in the old views of Adam Smith’s time, and gave more emphasis to human aspect in clear words.
Material Welfare
Marshall in his definition gave more importance to the means of material gains or material welfare. According to him, it studies, those material resources, on which welfare depends. In this a way, Marshall accepted the material welfare aspect. Other famous economists like – Pigou, Cannon, Beveridge etc. also supported it.
Study of Social, Normal and Real Persons
According to Marshall, economics studies only social, normal and real persons. The study of persons living outside the society or in forests, who-are unusual, alone and abnormal, is not done in it. The activities of unusual persons like – an insane, a miser, a saint or Mahatma etc. are said to be outside the area of the subject Matter of economics. According to Marshall, it studies the economic activities of only the social, normal and real persons.
Study of the Ordinary Business Activities of Life
In his definition, Marshall paid emphasis to the Ordinary Business Activities. These ‘ordinary business activities’ refers to those economic activities, which are related to the attainment and utilization of wealth. In this manner, Marshall gave a clear place, to human economic activities.