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Question
Explain the scarcity definition of Economics and assess it.
Solution
Lionel Robbins published a book “An Essay on the Nature and Significance of Economic Science”. In it, he defined “Economics is a science which studies human behavior as a relationship between ends and scarce means which have alternative uses”.
Assessment:
- Robbins does not make any distinction between goods conducive to human welfare and goods that are not.
- Economics deals not only with the microeconomic aspects but also with the macroeconomic aspects like how national income is generated.
Robbins reduces economics merely to the theory of resource allocation. - Robbin’s definition does not cover the theory of economic growth and development.
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RELATED QUESTIONS
Choose the correct option:
Statements related to Economics
a) Economics is a social science.
b) Concept of economics is derived from Greek word ‘Oikonomia’.
c) Economics is related to the study of human economic behavior.
d) Economics is related to management of the household
Statements incorrect with reference to Adam Smith's definition:
- Adam Smith is a classical economist.
- Wealth of Nations is authored by Adam Smith.
- Economics is the science of wealth.
- Economics studies common man.
Choose the correct option:
Key points in Lionel Robbins' definition
a) Wants are unlimited
b) Means are limited
c) Wants are not gradable
d) Means have alternative uses.
Complete the correlation :
Arthshastra : Kautilya : : Wealth of Nations :______________
The basic problem studied in Economics is
Microeconomics is concerned with
Find the odd one out:
Author of “An Inquiry into the Nature and Causes of Wealth of Nations”
Who is the Father of Economics?
Who has given scarcity definition of economics?
Compare and contrast various definitions of Economics.
