By: nikky Howard
Submitted: 2010-06-29 20:44:51 | Word Count: 865
Several writers of the first days outlined economics as "a science of wealth". Adam Smith commonly know as the daddy of contemporary economics, outlined economics as "A research into the character and causes of wealth of nations."
These definitions were defective as a result of they gave much importance to wealth. As wealth isn't everything, it solely leads to achieve welfare of human. Therefore it's man an that is that the aim all of the economic activities.
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Professor Dr. Alfred Marshall was the first economist who gave a logical definition of economics. He defined economics as: "A study of mankind in standard business of life, it examine that half of individual and social actions that is closely connected with attainment and use of material requisites"
CHARACTERISTICS OF DEFINITION:
This definition gave a new direction to the study of economics. Following are the necessary characteristics of definition.
1. A Social Science
This Definition makes economics a social science. It is a subject matter that's involved with the folks living in society. Per Marshall, as the behavior of folks isn't same all the time therefore principles of economics cannot be formulated like the laws of sciences. Further laws of economics don't seem to be as actual because the laws of natural sciences. For that reason it's a social science.
2. Study Of Man
Economics is connected to man; so it is living subject. It discusses economic problems and behavior of man. In keeping with Marshall it studies the behavior of man In normal business of life.
3. Wealth As A Means that Of Material Well Being
Consistent with Marshall, wealth is not the final objective of human activities and therefore we don't study wealth, for the sake of wealth. So according to this definition we have a tendency to study wealth as a source of attainment of fabric welfare.
4. Economics And Welfare
This definition makes economics a welfare oriented subject. We are concerned solely with those economic activities which don't promote material welfare of people at large are out of the scope of economics.
5. Materiality
Marshal stresses upon the concept of "material requisite of well being". So according to the current definition all economic activities resolve round the acquisition and use of fabric product like food, clothing etc. because they increase welfare of human beings. On the other hand non-material requisites of human life like education, recreation are ignored.
6. Normative Outlook
According to the current definition economics ought to make sure of good and dangerous aspects of economic activities and so involve itself in "what ought to be and what should not be". This is often called normative side of economics.
CRITICISM
"Robbins and other many economists severely criticized this definition on following grounds."
1. Restricted To Material Welfare
This definition limits the subject of economics to material welfare of people. But the subject of economics is not restricted to the study of material welfare of human beings. Truly each material and non material aspects of wellbeing are studies in economics.
2. Imprecise Concept of Welfare
The concept of welfare used in this definition is also not clear. The welfare of personalities isn't limited to the attainment of fabric requisites. There are a number of alternative factors which affect the human welfare. More the word "welfare" has different which means for different persons and totally different societies. So we have a tendency to cannot define economics using an unclear concept of welfare.
3. Restricted Scope
This definition has created the scope of economics limited. Only those activities are studied in economics that are aimed toward the attainment of fabric requisites of well being. Further it ignores the economic activities of someone not living in society. Attainment of non material requisites of human well being fall out of the scope of economics. This division of material and non material aspects of human welfare is not correct.
4. Economics And Welfare
Per Robbins the study of economic activities on the basis of welfare isn't good. It's not the duty of an economist to pass verdict that what is conducive to welfare and what's not. Thus per Robbins "No matter Economics is concerned with, it's not involved with causes of fabric welfare as such.
5. Moral Judgment
In this definition Marshall makes economics a theme that considers the proper and wrong side of economic activities. According to Robbins economics in neutral as regards ends and it's not the perform of an economist to pass moral judgments and say what's smart and what is bad.
6. Unrealistic
This definition seems to be unrealistic as we have a tendency to analyze it critically. The unclear concept of welfare, the division of ends into material and non material, the strain on good and unhealthy, the concept of man living in society etc. all these concepts put unnecessary restrictions and create the scope of economics limited. These ideas build the definition unrealistic.
Author Resource:-
Nik has been writing articles online for nearly 2 years now. Not only does this author specialize in Economics, you can also check out his latest website about:
