Economics as A science of scarcity and Choice’

Prof. Lionel Robbins (1898-1984) was a British economist, criticized Marshall’s welfare definition of economics and proposed own definition of economics in his famous book entitled, ‘ An essay on the Nature and Significance of economic Science’ in 1932 A. D. Lionel Robbins offered a definition, which he thought, was free from the defect he had pointed out in Marshall's definition. According to him "Economics studies human behaviors as a relationship between ends and scarce means which have alternative uses".

Robbins’ definition is mainly based on the following fundamental propositions.

(1)     Wants are unlimited

         Our wants are unlimited; we cannot satisfy all of them. It one want is satisfied continuously other arise and again problem start .our wants are numberless and we cannot satisfy them all. We must pick and choose between more urgent and less urgent wants.

(2)     Resources are limited

         Our wants are unlimited but resources are limited. If these means, like our wants, had been unlimited then also no economic problem would have arisen. Scarcity of resource is the second pillar of Robins' definition. Scarcity is relative to our needs.

(3)     Resources have alternative uses

         Resources have alternative uses. Not only are our resources scarce, but they are also such as can be put to a number of uses. Resources can be uses for satisfying any of our money wants. Our means thus, can be put to alternative used.

         Thus, the definition given by Robbins is logical and scientific in nature. He had put forward economics as a positive science in the sense that it analyses human activities as they are and does not give any value judgment whether or not the activities are beneficial or harmful.

Main point of scarcity centered definitions

(1)      It is scientific definition and it pointed out causes and effects.

(2)      This definition has greatly widened the scope of economics; it does not study only to wealth and activities relating to the material welfare of man.

(3)      According to this economics is neutral as regards ends. This makes economics is a positive science.

(4)      According to this, all types of human want, whether material or non-material, and those of any individual i.e. not necessarily living in a society come within the sample of economics.

Criticisms

There is no doubt that Robbins’ definition widens the scope of economics from material welfare to scarcity and choices. Although, Robbins’ definition is considered to be superior is not remained without criticisms. The Marshallian spirit is not altogether dead. Economists like Barbara Wootton, Lindley Fraser, Beveridge, etc, have criticized Robbins’ definition on the following grounds:

(1)      It ignores normative or ethical aspect of economic phenomena, the function of the economics is not only to explain and explore but also to advance and condemn.

(2)      It has reduced economics merely to valuation theory. But actually economics is more than study of value theory or allocation of resources.

(3)      It does not cover growth and development economics. In modern age, world demanded growth and development economics like, Keynesian economics

(4)      It cannot include the problem of unemployment of the economy. The problem of unemployment is major part of new economics but scarcity oriented economics does not link with it.

(5)      This economics does not touch human. It only touches science and scarcity of resources. In economics human behavior is main part of it.