Robbins definition of economic Presented by: Nisar Ahmad Adil

Biography of lionel robbbins Name:- Lionel Charles Robbins Born:- 22-November-1898 Sipson midlesex Died:- 15-May-1984 London Nationality:- British Lionel charles robbins (22/November /1898 to 15/May/1984) Was a British economist and head of the economic department at the London school of economic . He is known for his proposed definition of economic and for his instrument efforts in shifting Anglo Saxon economics from it marshalian direction.

Definition 1932 Economics: is the science which studies human behavior as a relationship B/W ends and scarce means which have alternative uses. robbins definition of economics based on the following pillars: Human wants or ends are unlimited. The ends vary in importance. The means are scarce. Means have alternative uses. What is economic resources ? ER are the various types of labour,capital,land and entrepreneurship use in produce of goods and services these resources are limited and the ability of commodity to produce goods and services are also limited. NOTE: robbins claims that his definition is superior to earlier definition.

Main pillers of deffinition Human wants or ends are unlimited. Human wants referred to as ends by robbins are unlimited. They increase in quantity and quality over a period of time. They vary among individuals and overtime for the same individual. It is not possible to find a person who will say that his wants for good and services have been completely satisfied. This is because of the fact that when one want if satisfied it is replaced by another and there is no end to it. the ends and wants vary in important. The ends or wants are of varying importance. They are ranked in order of importance as (a) necessaries (b)comforts © luxuries. Man generally satisfies his urgent wants first and less urgent afterwards in order of their importance.

The means or resources are scarce Resources are input used in the production of goods which we need. The resources (land , labor , capital and entrepreneurship) at the disposal of man are scarce . They are not found in as much quantity as they are required . Scarcity means that we do not and can not have enough income or wealth to satisfy our every desire .scarcity exist because human wants always exceed what can be produced with limited resources and time that nature makes available to man at any one time. Scarcity is a fact of life. It occurs among the poor and among the rich. The rich person on the earth faces scarcity because he too cannot satisfy all his wants with the limited time available to him. “If all the things were freely available to satisfy the unlimited human wants there would not have arisen any scarcity hence no economic goods , no need to economize and no economics problem” Scarcity , thus can be defined as the excess of human wants over what can actually product in economy.

Economic resources/means have alternative uses. The fourth important proposition of robbins definition is that the scarce resources available to satisfy human wants have alternative uses. They can be put to one use at one time . For example if a piece of land is for the production of sugarcane it cannot be utilized for the growth of another crop at the same time man therefore has to choose the best way of utilizing the scarce resources which have alternative uses. The key problems confronting every society the choices to be made by it are: What good shall be produced and in what quantity? How should the various goods and services be produced? How should the goods and services be distributed? summing up, the foundation of economics science according to robbins , is based on satisfaction of human wants with scarce means which have alternative uses.

Merits of robbin Widen scope: according to Robbins definition, economics has much wider content, it studies all economics activities of man, whether they are concerned with material or non material welfare,(it takes in account all types of human wants, material or non material, as well as all types of persons living in society or not). More scientific & analytical: Robbins definition is scientific definition, because he talks of the economic aspect of all activities. Traditional economists divided the activities of man into(material, non material &welfare). Universal definition: robbins laid down the foundation of this definition on some facts and realities which made it universal because scarcity problem is felt by every body at every time and every place on the other hand the traditional definition of economics lack universality there is no place in the world where is not faced with dilemma of scarcity and choice.

No charge of sidedness or selfishness: Now no charge of preaching mamonism n be leveled against it.it can no longer be called a dismal science robbins remove this bad reputation of economic. Positive science or observed economy: Robbins tries to make economics a more exact science. Example our desires are unlimited . No responsibility for selecting the ends: According to robbins economics has nothing to do with ends they may be noble or ignoble , material or nonmaterial (it takes no responsibility for selecting the wants they may be good or bad , economic is not concerned. Wherever the ends are many and the means are scarce , economic is directly concerned . (so this definition is superior then other definitions , according to wicksteed puts it , economics laws are like the laws of life ).

Criticism on robbins definition In deferent economic periods we were eye witness of deferent definitions providing with merits and demerits like Adam smith ,Alfred marshal and robbins definitions of economics which I want to present his criticisms. Robbins definition of economic has bitterly criticized by eminent writers and scholars like: hicks, Durbin, Frazer, and etc. in following grounds. Reduced economics merely to a theory of value: It is objected that robbins has reduced economics merely a valuation theory . While it is more than a value theory . Robbins has restricted scope of economics by treating it as a positive science only while it is wrong It has normative aspect also which has ignored by robbins.

Does not cover economics planning and development. The theory of economic planning and development has recently become an important branch of economic. But robbins definition has not covered the inflation, unemployment over population and etc. Ignores macro aspects. There are two types of economics the first one is micro economics and the other one is macro economics. Micro economics cover all market transactions and it deferent affairs. Macro economic cover wider economics which related to national income, level of import and export of a country and deferent affairs. But it has ignored in economics definition of robbins.

THANKS: Study of economics growth: The study of economic growth process remained outside the scope economics in robbins definition while through economics growth that living standards improve. THANKS: