Economic Theory

Robbins Definition Of Economics – Scarce Means Definition

Introduction Of Robbins

Prof Lionel Robbins

Robbins definition of Economics challenged Dr. Marshall’s definition of Economics which was a major improvement over the definition of Adam Smith and other ancient Economists. Before Prof. Lionel Robbins, Prof. Marshall tried to give a complete and faultless definition of economics. At that time people started thinking that the Economic Science has completely developed and matured. But in 1932, after the publication of Prof. Robbins’s book An Essay on the Nature and Significance of Social Science, a controversy roused in the field of Economics. He tried to give economics another shape, apart from material welfare. In the words of Robbins

Economics is the science which studies human behavior as a relationship between ends and scarce means which have alternative uses.

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Marshall Definition of Economics – Wealth definition

Economics is a science of choice making.

Introduction Of Marshall

Dr. Alfred Marshall

Marshall definition of Economics was the first to challenge Adam Smith definition. Dr. Alfred Marshall (Born. 26 July 1842, Died 13 July 1924) was the first Economist, who denied the wealth-related definitions of Adam Smith, which was in vogue for a long time, in his two books published in 1890 named Principles of Economics and Economics of Industry, and declared them wrong, and defined it as not the study of human welfare. He gave, ‘Man’ the first place and Wealth’ as secondary and clarified that wealth is for man and man is not for wealth. Wealth is not the ‘End’, it is only a ‘Means’ to attain welfare. He presented the definition of Economics in this manner in his book ‘Economics of Industry’.

However, Marshall definition was also criticized later by a renowned Professor of ‘London School of Economics’, Prof. Leonel Robbins in his book ‘An Essay of the Nature and Significance of Social Science‘ in 1932.
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Keynesian Theory of Deficiency, Demand and Employment

Introduction to Keynesian Theory of Employment

John Maynard Keynes

Keynesian Theory was given by Keynes when in his volume “General Theory of Employment, Interest, and Money” had not only criticized the Classical Theory of Employment but had also analyzed those factors that affect the employment and production level of an economy. Most of the modern economists agree with the concept of Keynes. The Keynesian Theory of Employment is a product of the world-wide depression of 1931-36. Due to this depression, unemployment spread in all independent capitalist economies. Keynes analyzed that situation of unemployment and tried to find the reason and solution to that problem.Read More »Keynesian Theory of Deficiency, Demand and Employment