Robbins's Definition of Economics | Merits and Demerits

The most accepted definition of economics was given by Lord Robbins in 1932 in his book "An Essay on the Nature and Significant of Economics Science". According to Robbins neither wealth nor human welfare should be considered as the subject matter of economics. His definition runs in terms of scarcity. 

"Economics is the science which studied human behavior as a relationship between multiple(ends) and scarce means which have alternative uses".

Main Points of the Definition

• Unlimited Wants Or Multiple Ends; Human wants are unlimited in number. Whenever one are is satisfied, then automatically several wants grow up. Hence, it is endless. With progress in civilization and development science and technology numerous wants are developed. Hence, wants are ever growing and never ending.
• Limited Means; Human wants are unlimited but resources or means to satisfy them are limited. The means refer to goods and services which we use to satisfy our wants. They are material and non-material goods like time, money, services, resources, etc. These resources are scarce.
• Problem Of Scarcity and Choice; The problem of economizing resources lead to the problem of scarcity and choice. Since wants are numerous and means are scarce, we have to choose the most urgent wants from these unlimited wants. Hence, the consumer will select few wants from numerous wants according to his pattern. Thus, scarcity of resources makes the choice of necessary. Hence, economics is termed as a science of scarcity and choice.
• Alternative Uses of Resources; All the scarce means can be used in more than one purpose. In other word, they can be used in several purposes, for instance, land is very scarce, but land can be used for construction of building, cultivation, playground, etc. likewise all the economic resources are used for various purposes. Thus, in reality goods can be put to alternative uses of varying importance.

Merits of the Robbins's Definition of Economics

1. Status of a Positive Science

Robbins tries make economics a more exacts science. According to him, economics has nothing to do with ends. They may be noble or ignorable, material or non-material. Economics is not concerned with them as such.

2. An Analytical Definition

Robbins definition makes study of economics analytical. It studies the particular aspects of human behavior which is imposed by the influence of scarcity.

3. A Universal Definition

Robbins definition is applicable everywhere. It is concerned with unlimited wants and limited resources which is the problem facing every economy socialistic or capitalistic.

4. Clear on the Nature and Scope of Economics

Robbins definition serves to specify the nature, scope and subject matter of economics. According to him, an economic problem is characterized by the possibility of exercising choice between ends which have alternative choice.

5. Valuation is the Central Problem

According to Robbins, valuation is the central problem of economics. Whenever the ends are unlimited and the resources are scares. They give rise to an economic problem.

Demerits of the Robbins's Definition of Economics

1. Reduced Economics merely to a theory of value

Robbins's definition restricts the scope of economics by treating it as a positive science only while in reality it is both a positive and a normative science.

2. Scope of Economic has been widered

Robbins's definition has widered the scope of economics by covering the whole of economic life while it is concerned with that part of human life which is connected with the price.

3. Economics has become a Colorless Science

Robbins's made economics colorless, impersonal and abstract. It is in fact a definition of economics for economist only.

4. Study of Economic Growth

The study of economic growth process remains outside the scope of economics while it is through economic growth living standards improve.