According to marshal
Understanding Marshall's Definition of Economics
The question asks for the definition of economics according to the famous economist, Alfred Marshall. Different economists have defined economics in various ways, focusing on different aspects of human activity and resource management. Understanding these definitions is crucial in studying economics.
Analysing the Options for Marshall's Definition
Let's examine the given options to identify the one that corresponds to Alfred Marshall's perspective on economics:
- Option 1:
Economics is the science of studying the relationship between ends and scarce means.
This definition is famously attributed to Lionel Robbins, not Alfred Marshall. Robbins focused on the problem of scarcity and choice. - Option 2: <span>Economics is the study of mankind in the ordinary business of life</span>. This statement is the well-known definition provided by Alfred Marshall in his seminal work, 'Principles of Economics'. Marshall viewed economics as a study of how people earn and spend their income, focusing on their ordinary daily lives and material welfare.
- Option 3: <span>Economics is the science of money</span>. This is a very narrow and incomplete definition of economics. While money is an important part of the economy, economics studies much more than just money, including production, consumption, distribution, and resource allocation. This is not Marshall's definition of economics.
- Option 4: <span>All of the above</span>. Since options 1 and 3 are not Marshall's definition, this option is incorrect.
Based on the analysis, only Option 2 accurately represents Alfred Marshall's definition of economics.
Marshall's View on Economics
Alfred Marshall is considered one of the founders of neoclassical economics. His definition highlights the human aspect of economic activity. He saw economics not just as a study of wealth, but as a study of human behavior in relation to wealth and material well-being in the context of their daily lives. This makes Marshall's definition of economics quite broad and centered around human welfare.
Comparing Marshall's definition with others helps clarify its focus:
| Economist | Definition of Economics | Key Focus |
|---|---|---|
| Adam Smith | Science of Wealth | Wealth creation, production |
| Alfred Marshall | Study of mankind in the ordinary business of life | Human welfare, ordinary life, material requisites of well-being |
| Lionel Robbins | Science of scarcity and choice | Scarce resources, unlimited wants, choices |
This table shows how Marshall's definition of economics shifted the focus from mere wealth to human welfare and the ordinary activities of life. Therefore, understanding Marshall's definition of economics is key to grasping his contribution to the field.
Conclusion
The statement "Economics is the study of mankind in the ordinary business of life" is the widely accepted definition according to Alfred Marshall. This definition is a cornerstone of the Marshallian school of thought in economics.
Important Questions from Economy
The Five Year Plan was first launched in
Which of the following was/were the feature(s) of Lenin’s New Economic Policy (NEP) for the Soviet Union?
1) Private retail trading was strictly forbidden
2) Private enterprise was strictly forbidden
3) Peasants were not allowed to sell their surplus
4) To secure liquid capital, concessions were allowed to foreign capitalists, but the State retained the option of purchasing the product of such concerns
Select the correct answer using the code given below:
Which one of the following was set as a target of average growth of GDP of India over the plan period 2012-2017 by the Approach Paper to the Twelfth Five year Plan?
In ________ economies, all productive resources are owned and controlled by the government.
Private ownership of the means of production is a feature of a _______ economy.
