Nature and Scope of Economics

Quite a few writers of the early days defined economics as "a science of wealth". Adam Smith frequently know as the father of modern economics, defined economics as "An enquiry into the nature and causes of wealth of nations."

These definitions were defective for the reason that they gave a lot value to wealth. As wealth is not every thing, it only leads to obtain welfare of human. As a result it is man an which is the aim all of the economic activities.

Professor Dr. Alfred Marshall was the initial economist who gave a logical definition of economics. He defined economics as: "A study of mankind in ordinary business of life, it examine that portion of individual and social actions which is closely related with attainment and use of material requisites"

CHARACTERISTICS OF DEFINITION:

This definition gave a new direction to the study of economics. Following are the critical characteristics of definition.

1. A Social Science

This Definition tends to make economics a social science. It is a topic that is concerned with the people today living in society. According to Marshall, as the behavior of human beings is not exact same all the time as a result principles of economics can not be formulated like the laws of sciences. Further laws of economics are not as exact as the laws of all-natural sciences. For this reason it is a social science.

two. Study Of Man

Economics is connected to man hence it is living topic. It discusses economic issues and behavior of man. According to Marshall it scientific studies the behavior of man In ordinary home business of life.

three. Wealth As A Indicates Of Material Nicely Being

According to Marshall, wealth is not the ultimate objective of human activities and therefore we do not study wealth, for the sake of wealth. So according to this definition we study wealth as a source of attainment of material welfare.

4. Economics And Welfare

This definition tends to make economics a welfare oriented subject. We are concerned only with those economic activities which do not promote material welfare of human beings are out of the scope of economics.

five. Materiality

Marshal stresses upon the idea of "material requisite of well getting". For this reason according to this definition all economic activities resolve about the acquisition and use of material goods like food, clothing etc. simply because they enhance welfare of human beings. On the other hand non-material requisites of human life like education, recreation are ignored.

6. Normative Outlook

According to this definition economics should take care of superior and poor aspects of economic activities and for this reason involve itself in "what must be and what ought to not be". This is referred to as normative aspect of economics.

CRITICISM

"Robbins and other lots of economists severely criticized this definition on following grounds."

1. Restricted To Material Welfare

This definition limits the topic of economics to material welfare of individuals. But the subject of economics is not limited to the study of material welfare of human beings. In reality each material and non material elements of wellbeing are studies in economics.

2. Vague Idea of Welfare

The concept of welfare employed in this definition is also not clear. The welfare of human beings is not limited to the attainment of material requisites. There are lots of other variables which influence the human welfare. Additional the word "welfare" has distinct meaning for unique persons and completely different societies. Therefore we can't define economics making use of an unclear concept of welfare.

3. Limited Scope

This definition has made the scope of economics restricted. Only those activities are studied in economics which are aimed at the attainment of material requisites of nicely being. Further it ignores the economic activities of a individual not living in society. Attainment of non material requisites of human well becoming fall out of the scope of economics. This division of material and non material elements of human welfare is not correct.

4. Economics And Welfare

According to Robbins the study of economic activities on the basis of welfare is not very good. It is not the duty of an economist to pass verdict that what is conducive to welfare and what is not. Therefore according to Robbins "Whatever Economics is concerned with, it is not concerned with causes of material welfare as such.

5. Moral Judgment

In this definition Marshall makes economics a subject which considers the suitable and wrong aspect of economic activities. According to Robbins economics in neutral as regards ends and it is not the function of an economist to pass moral judgments and say what is fantastic and what is negative.

6. Unrealistic

This definition appears to be unrealistic as we analyze it critically. The unclear concept of welfare, the division of ends into material and non material, the strain on great and bad, the concept of man living in society etc. all these concepts put unnecessary restrictions and make the scope of economics restricted. These tips make the definition unrealistic.

CONCLUSION

Although this definition gave a new path to the subject of economics but it had many weaknesses. Some of the faults of definition are discussed above. For these reasons this definition was replaced by other new definitions of economics.