Micro Economics
What is Economics? OR Definition ofE Economics? OR Scope of Economics Wealth Definition (Science of Wealth) Welfare Definition (Science of material well-being) Scarcity Definition (Science of choice making) Growth Definition (Science of dynamic growth and development)
Criticism Neglect of immaterial things. The concept of welfare is a vague
Scarcity Definition Given by Lionel Robbins Also Known as Robbins Definition. Given in 1931 In book named "Nature and Significance of Economics" "Economics is a science which studies human behaviour as a relationship between End and Scarce means which have alternative use."
Economic Problem/ Scarcity definition deals with Also known as problem of choice making on the basis of urgency of wants/allocation of means. Human wants are unlimited Means are scarce And means have alternative(multiple) uses. Because of this economic problem arise
Criticism Impersonal and colourless Ignored macro-economic concepts. No focus on economic growth and development. Problem of abundance
Leader Given Terms as Economics Terms as Economics Gives Marshall's Definitiorn Alfered Marshall Welfare Definition Social Science Normative Science Suggestions Robbin's Definition Lionel Robbins Scarcity Definition Human Science Positive Science Solutions to problem Difference Between Marshall's and Robbin's definition
Growth & Dynamic Definition Given by Samuelson In year 1971. In book"Introduction to Economics" "Economics is the study of how people and society choose, with or without the use of money, to employ scarce productive resources which could have alternative uses, to produce various commodities over time and distribute them for consumption now and in the future among various persons and groups of society."
Main features of Samuelson's Definition (i) Efficient Allocation of Resources: There is a great deal of similarity between the approaches of Samuelson and Robbins. Both have stressed the problem of scarcity of means in relation to unlimited ends (ii) Dynamism: Samuelson has included dynamism in the definition of Economics by incorporating the time element. The problem of growth has been included in the purview of the definition. (iii) Problem of Choice: The greatest feature of Samuelsson definition is that if takes into account the problem of choice in the4 dynamic framework of economics.
Main features of Samuelson's Definition (iv)Improvement inResource Allocation: Economics analyse the costs and benefits of improving the pattern of resource allocation Improvement of resource allocation and better distributive justice are synonymous with economic development. (v)Distribution: The modern definition also concerns itself with the distribution for the consumption among various persons and group in a society.