Economics is a Science of material well-being-Explain it.
Posted by Ripon Abu Hasnat on Tuesday, May 27, 2014 | 0 comments
Some economists defined Economics as a material well-being. Under this group of definitions the emphasis is on welfare as compared with wealth in the earlier group. Two important definitions are as follows:
"Economics is a 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 the material requisites of well-being. Thus, it is on the one side a study of wealth and on the other and more important side a part of the study of the man",
-Alfred Marshall
"The range of our inquiry becomes restricted to that part of social welfare that can be brought directly or indirectly into relation with the measuring rod of money"
-A.C. Pigou.
In the first definition Economics has been indicated to be a study of mankind in the ordinary business of life. By ordinary business we mean those activities which occupy considerable part of human effort. The fulfillment of economic needs is a very important business which every man ordinarily does. Professor Marshall has clearly pointed that Economics is the study of wealth but more important is the study of man. Thus, man gets precedence over wealth. There is also emphasis on material requisites of well-being. Obviously, the material things like food, clothing and shelter, are very important economic objectives.
The second definition by Pigou emphasizes social welfare but only that part of it which can be related with the measuring rod of money. Money is general measure of purchasing power by the use of which the science of Economics can be rendered more precise.
Marshall's and Pigou's definitions of Economics are wider and more comprehensive as they take into account the aspect of social welfare. But their definitions have their share of criticism. Their definitions are criticized on the following grounds.
(i) Economics is concerned with not only material things but also with immaterial things like services of singers, teachers, actors etc. Marshall and Pigou chose to ignore them.
(ii) Robbins criticized the welfare definition on the ground that it is very difficult to state which things would lead to welfare and which will not. He is of the view that we would study in Economics all those goods and services which carry a price whether they promote welfare or not.
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