Many authors of the early days defined economics as "the science of wealth". Adam Smith know commonly as the father of modern economics, defined economics as "an inquiry into the Nature and Causes of the Wealth of Nations."
These definitions were defective because they gave much importance to wealth. As wealth is not everything, it only leads to human wellbeing through. Therefore, it is a person who is the object of all economic activity.
Prof. Dr. Alfred Marshall was the first economist who was a logical definition of the economy. He defined economics as: "A study of mankind in the ordinary business of life, they examine that part of individual and social action which is closely related to the achievement and the use of material props"
FEATURES tHE dEFINITION:
gave this definition a new direction to the study of economics. The following are the essential features of the definition.
1. A Social Sciences
This definition makes economics a social science. It is a subject that is concerned with the people living in the community. According to Marshall, as the behavior of people, the time is not all the same, therefore, principles of economics do not like the laws of science are formulated. Other laws of economics are not as accurate as the laws of science. For this reason, it is a social science.
2. Study Of Man
economy is based on the people; therefore it is living subject. He discussed the economic problems and human behavior. According to Marshall, she studies the behavior of people in the ordinary business of life.
3. wealth as a means of material well-being
After Marshall, wealth is not the ultimate goal of human activity and therefore we can not study the wealth, for the sake of wealth. Therefore, according to this definition, we study wealth as a source of achievement of material prosperity.
4. Economy and Welfare
This definition makes economy a welfare-oriented theme. We are only concerned with the economic activities that are not material welfare of the people are outside the scope of economics.
5 support. Materiality
Marshal emphasized on the concept of "material condition of well-being". Therefore, according to this definition, all economic activities to solve the acquisition and use of material goods like food, clothing and so on, because they increase the welfare of people. On the other hand non-material conditions of human life, such as education, recreation, are ignored.
6. Normative Outlook
According to this definition economy should take care of the good and bad aspects of economic activity and therefore involve itself in "what should be and what should not be." This is called normative aspect of the economy.
REVIEW
"Robbins and other many economists strongly criticized this definition on the following reasons."
1. To the protection of materials Limited
This definition limits the subject of the economy of material prosperity of the people. But the issue of economics is the study of the material welfare of the people is not limited to these. In reality, material and non-material aspects of well-being are studying economics.
2. Vague Concept of Welfare
The concept of welfare is used in this definition, is also not clear. The welfare of the people is not limited to the achievement of the substantive conditions. There are many other factors that affect our well-being. Further, the word "welfare" different meaning for different people and different societies. Therefore we can not define an unclear term economics of welfare with.
3. Limited Scope
has made this definition of the scope of business limited. There are examined only the activities in the economy, which are aligned in achieving the material conditions of well-being. They also ignored not live the economic activity of a person in society. Achieving non-material conditions of human well outside the scope of the economy's fall. This division of the tangible and intangible aspects of human welfare is incorrect.
4. Economy and Welfare
After Robbins the study of economic activities on the basis of the social is not good. It is not the job of an economist to pass judgment, which is conducive to the well-being and what is not. Thus, according to Robbins' Whatever Economics deals with, it is not about the causes of material wealth as such.
5. Moral Judgment
This definition Marshall makes economy a topic the considered as ends in relation to, and it is not the function of an economist to pass by Robbins economy in neutral right and wrong aspect of economic activity. moral judgments and say what is good and what is bad.
6. unrealistic
This definition seems to be unrealistic, as we analyze it critically. the vague concept of welfare, the division of ends in material and non-material, the load is good and bad, the concept of people to live in society, etc. all these concepts put unnecessary restrictions and the scope of the business to make limited. make these ideas defining unrealistic.
FINAL
Although this definition was a new direction on the subject of the economy, but it had many weaknesses. Some of the errors of the definition discussed above. For these reasons, this definition has been replaced by other new definitions of economics.
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