DEFINITION OF ECONOMiCS BY ALFRED MARSHALL
Professor Dr. ALFRED was a British economist. He defined the economics in the following words.
"Economics is the study, of that human behavior which is related with ordinary business of life. It deals with that part of individual and collective human efforts which greatly related with the attainment and with the use of material things for the prosperouls life. So we can say that Economics, on the one hand, is the science of wealth while on the hand, it is the study of an aspect of human life."
We can derive the following points from this definition of economics:
A. In this definition of economics Marshall says that wealth is sought for promoting human welfare. So primary importance is given to human welfare and not to wealth.
B. Economics is concerned with the ordinary business of life. It does not concern with Economic Man i.e. a man who only wants to get wealth only for wealth. Economics of concerned with ordinary man who is influenced by human considerations in the pursuit wealth.
C. Economics does not study the wealth only for wealth but for the purpose that with the help of wealth we can attain those material requisites. which can increase the material welfare of human being.
D. Human efforts are of many types. Economics is concerned only that struggles due to the result of which material requisites are attained to the human beim. Professor Marshall's followers like CANNON, PARETO, PEGOU, BAVERIDGE. etc. also defined Economics as
"A study of causes of material - welfare"
MERITS OF THE DEFINITION
The merits of this definition of Economics are as follow:
SCIENCE OF HUMAN WELFARE
According to Marshall, economics is a science of human welfare. This science Quides human being to get and utilize resources for the fulfillment of human needs in a better way.
COMPREHENSIVE AND CLEAR DEFINITION
Unlike the definition of economics by Adam Smith, this definition is clear from all conflicts. The struggle for the attainment of requisites in order to live e a better life is the scope of economics.
STUDY OF INDIVIDUAL AND COLLECTIVE STRUGLES
According to this definition economics stresses the collective struggle of human being in order to put the society on the way of progress.
MAN'S IMPORTANCE
According to Marshall, man is more important than wealth. wealth is the source of the fulfillment of human needs.
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