Q # 3 Give the definition of Economics by Professor Alfred Marshall/Economics is

a science of welfare discusses it and also explain what criticism is made against
this definition?
A British economist Alfred Marshall wrote a book "Principles of economics" at this stage.
He tried to remove the misconception and put economics on the road of development.
Alfred Marshall's Definition
"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 and
social action which is most closely connected with the attainment and use of the
material requests of wellbeing."
Marshall the founder of neo-classical school of thoughts or welfare school of economics
and his followers are of the view that on the one hand economics is the study of wealth
and on the other hand it is the study of man who is more important than wealth. Further
they are of the view that materials welfare is the primary aim of economics. So
economics is the study of material welfare.
To elaborate Marshall's definition we discuss the main points:-
1. Study Of An Ordinary Man
According to Marshall Economics does study of an ordinary man who lives in society is
not the subject of study of economics.
2. Wealth Is Not The Be All And End All Of All Human Activity
Economics does not regard wealth the be all and the end all of the human activity.
Wealth is only a mean to the fulfilment of an end which is human welfare, so welfare
and not wealth is, therefore of primary importance to man.
3. Study of all Activity of Men
It does not study all activities of men people perform different activates while living in a
society. There are different subjects to cover different activities i.e. Sociology for social
activities, political science of political activities, physical education for sports activities.
etc. but economics deals with the economic activities of human beings living in a
society.
4. Study of Material Welfare
Economics only studies the ways in which man applies his knowledge and skill to the
gift of nature for the satisfaction of this material welfare and ignores non-material
aspects. According to Marshall's economics is the study of material welfare. He says
each man applies his knowledge, uses his skill for the satisfaction of his material
welfare and economics has nothing with immaterial thing.
Criticism
1. Narrow Down The Scope Of Economics
According to Robbins when Marshall used the word "Material" in his definition
considerably narrows down the scope of economics. There are many things in the world
which are immaterial, but they are useful for promoting human welfare. I.e. the services
of a doctor teacher, lawyer etc. which satisfy our wants and scarce in number (supply).
If we exclude these services and include only material goods then the sphere of
economics study will be very much restricted.
2. Relation Between Economics and welfare
The second objection by Robbins is on the establishment of relation between
economics and welfare. He says there are many activities which do not promote human
welfare, but they are regarded economic activities (e.g.) the production and sale of
alcohol goods or opium, so he says we talk of welfare at all.
3. Welfare Is A Vague Concept
The third objection is an welfare. He says welfare is vague concept. It is purely
subjective. It varies from man to man, from place to place and from age to age. Robbins
says what is the need of the use of such concept which cannot be measured
quantitatively and on which two persons cannot agree as what is conductive to welfare
and what is not.
4. It Involves Value Judgment
In this definition the word welfare involves value judgment (what is good and what is
bad). According to Robbins, economists are forbidden to pass any judgment.
5. Impractical
Marshall's definition is theoretical in nature. It is not possible in practice to divide man's
activities in to material and non-material.