DEFINITION OF ECONOMICS BY LIONEL CHARLES ROBBINS

INTRODUCTION Lionel Charles Robbins, Baron Robbins, FBA (22 November 1898 - 15 May 1984) was a British economist and head of the economics department at the London School of Economics. He is known for his proposed definition of economics. He presented a paper in 1932 and then in 1935 Essay on the Nature and Significance of Economic Science ROBBIN S DEFINITION OF ECONOMICS In this essay he defined economics as: "Economics is a science which studies human behavior as a relationship between ends and scarce means which have alternative uses." MAJOR PROPOSITIONS Robbins proposes and defends that economics as science is: the study of "human behavior as a relationship between ends and scarce means" with alternative uses (1935, p. 16) about an aspect of behavior (based on scarcity), not about certain kinds of behavior (p. 17) neutral between ends but relevant to any end dependent on scarce means (p. 24) incapable of determining by observation or introspection that the Law of Diminishing Marginal Utility for any individual implies that a redistribution of income from rich to poor would increase total utility (p. 137), thus excluding the interpersonal comparability of utility from the realm of science. Distinct from value judgments (p. 148).

EXPLANATION Wants of people in a given society are unlimited. The satisfaction of one wants leads to the occurrence of other wants. Since these wants are unlimited, we have to choose between more urgent and less urgent wants and in any nation four factors of production are limited. It is this fact that give rise to the science of economics. The scarce means are to be adjusted to the multiple ends which secure maximum utility this means he indirectly considers material and being of the people. Some economists think scarcity definition limits the scope of economics which is a social science. This definition converts economics into a pure

science that formulates economic theory. So many economists believe that economics is not only a tool maker but a tools user science. CRITICISM 1) Ethical aspect ignored: Robbins does not consider economics as a normative science. He overemphasized economics as a positive science. In his view, economics only says how man behaves and not how he should behave. 2) Too much stress on scarcity: Robbins lays too much stress on the scarcity aspect. He forgets that an economic problem may also out of abundance.

3) Imprecise scope: According to Robbins's definition, the scope of economics is either too wide or too narrow. In the wider sense, economics embraces almost the whole of man's life and in the narrow sense economics would be a science of price theory or market equilibrium.

4) Neglect of social aspects: Robbins's definition studies and deals with individual behavior only. In fact, economics is a social science which deals with man's behavior as a member of society as well.

5) No human touch: Robbin's definition lacks human touch. A satisfactory definition should be concerned not only with the adjustments of scarce resources to unlimited wants, but also with human welfare.

6) Static, not dynamic: Dynamic economics is concerned with growth or development. Robbins's definition takes a static view of the economic problem and therefore does not help us to solve the problem of development.