Question

What are its weaknesses of Marshall's definition?

Answer 1

Answer:

DEMERITS OF MARSHALL'S DEFINITION.

1. NARROW SCOPE :- According to this definition economics is concerned only with those activities which promote only material welfare and it has unnecessarily narrowed the scope of economics.

Answer 2

ALFRED MARSHALL defined Economics as "Economics is the study of humans, in relation to the ordinary business of life. It studies that portion of the personal and social activities, which are closely related to the attainment of material resources, related to welfare and its utilisation".

• According to Alfred Marshall, economics is the study of man in the regular and ordinary business of life.
• It explores how a person earns his income and how he invests or finances it.
• It is a study of wealth.
• And it also gives great emphasis on the study of welfare (well-being).
• It studies the economic activities of only the social, normal, and real individuals.
• It states the importance of both hypothetical and practical aspects of economic activities.

WEAKNESSES OF ALFRED MARSHALL'S DEFINITIONS ARE:-

• Ignorance Of Immaterial Resources:- Alfred Marshall's definition is the relation of Economics only to the attainment of material resources and their consumption, whereas, services of teachers, professors, doctors, moderators and other employees are immaterial resources which are also included in Economics.

• Unclear Of Ordinary Business Activity:- Some activities don't come under an ordinary business of life but still they are studied in Economics such as the study of the economy at the time of the battle or war, circumstances of Imperfect Competition, Monopoly, etc.

• Vagueness Of Welfare Activities:- There are activities like the production of intoxicant products like alcohol and cigarettes in Economics which generates wealth but can reduce Human Welfare.

• Absence Of Precise Definition Of Human Welfare:-Human Welfare changes with the time, conditions and place. It doesn't have any quantitative measurements.

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