1. A Presentation on Definition of Economics Submitted by Surinder Pal Sukhija Associate Professor Department of Economics Post Graduate Government College Sector 11, Chandigarh

2. Definition of
Economics

3. Definitions of Economics classified into three categories
Wealth definitions
Material Welfare definitions
Scarcity definitions

4. Wealth- Definitions (Given by Classical economists)
Adam Smith: Economics is an enquiry into the nature and causes of wealth of nations.
J B Say: Economics is the science which treats of Wealth.

5. Features (Wealth definition)
Economics is the study of wealth only
Wealth means scarce material goods only
Economics seeks to investigate causes that lead to increase in wealth
Economics studies economic man who is aware of his self interest and makes efforts to achieve his selfish ends to the maximum

6. Criticism More emphasis on wealth Narrow meaning of wealth
Concept of economic man
Neglect of welfare
Neglect of means to attain this Narrow subject matter
(Main critics are Carlyle, Ruskin, Morris and Bailey)

7. Material Welfare definition ( Given by Neo Classical economists)
Alfred Marshall: Economics is the study of mankind in the ordinary business of life; it examines that part of individual and social action which is most closely connected with the attainment and with the use of material requisites of well being.
Penson: Economics is the science of material welfare.

8. Features (Material welfare definition)
Importance to study of man
Study of economic activities
of social man
Ordinary business of life
Study of real man
Material requisities
Welfare
Science and art
Money is measure of material
welfare

9. Criticism Meaning of ordinary business of life not clear Limited scope
Welfare concept is uncertain
Economics is a human science
It is just classificatory and not analytical
Economics is just a positive science
( Main critic: Lord Robbins)

10. Scarcity definition
Lord Robbins: Economics is the science that studies human behavior as a relationship between ends and scare means which have alternative uses
Scitovsky: Economics is a science concerned with administration of scarce resources

11. Features (Scarcity definition)
Unlimited wants
Limited means
Alternative uses of means
Wants differ in intensity
Economic problem
Opportunity cost

12. Criticism Ignores social aspect of economic activities
Economics is not neutral as regards ends
Very wide scope of economics
Not only a positive science
Scarcity is not the only cause of economic problem
Study of static condition
Complex and abstract

13. Conclusion Prof. Robbins gave economics the status of science.
Lord Keynes: In economics, we study the administration scarce resources, and of the determinants of employment and income.

14. Modern economists: Economics now deals with creating a synthesis between unlimited wants and limited means while tackling the problems of income, output and employment.

15. Thank you