DEFINITION OF

ECONOMICS 2
BY RUPALI BORAH
DEFINITION OF SCARCITY BY LIONEL
ROBBINS
According to Robbins, ‘Economics is the science which studies human behaviour
as a relationship between ends and means which have alternative uses.’
Features of scarcity of definition :-
1. According to Robbins, economics is a science. Economics formulates various
laws which solve economic problems.
2. Ends means human wants. They are unlimited. This is the fundamental fact
of economic life. When one wants gets satisfied, another wants crop up.
People like to satisfy that wants which they desire the most.
3. Resources are scare in relation to wants.So all wants cannot be satisfied. So
human beings have to decide which wants are important to use the scare
resources.
MERITS AND DEMERITS OF SCARCITY
DEFINITION
• Merits :
• This is the more precise and comprehensive definition.
• This definition talks about more realistic situation.
• This definition wider in scope as it covers resoures are scare and they have alternative use.
• This definition studies human behaviour.
• Demerits :
• This definition ignores that economics is a social science, as it talks about human science.
• This definition is nerrow and restrictive to scope.It doesnot talk about economic growth.
GROWTH DEFINITION BY PAUL A.
SAMUELSON
• According to samuelson, ‘Economics is the study of how man and
society, choose with or without the use of money, to employ scare
productive resources which could have alternative uses, to produce
various commodities overtime , and distribute them for consumption
new and in the future among various people and groups of society’.
Features :
• The definition stresses on the problem of scarcity of resources in
relation to unlimited ends and alternative uses of resources.
• It has a element of time in which gives it a dynamic dimensions.
• This definition touches upon economic growth and welfare aspects
also.
MERITS OF GROWTH DEFINITION.

• This definition is based on growth and it is realistic in nature as it discuss economic problems.
• Here, economics studies both material and non-material means of economic welfare. So it is wider in
scope.
• ‘It is more practical as it not only discuss problems but also suggests measures.
• This is more dynamic in nature. It is not only discuss present problems but also future problems.
• As Samuelson definition is more wider, practical , comprehensive and modern and it is also growth
oriented and future oriented, so this definition doesn not have any demerits.