Q.Explain the scarcity definition of Economics and assess it.

Robbins' scarcity definition (1932) treats Economics as the science of choice — allocating scarce means with alternative uses among unlimited ends. Its merits are that it is scientific, universal and analytical; its defects are that it is impersonal, ignores growth and macroeconomics, and drops the welfare focus.

In the Tamil Nadu HSC Class-11 Economics syllabus, the scarcity definition is one of the major definitions of Economics.

The definition. Lionel Robbins, in his 1932 book An Essay on the Nature and Significance of Economic Science, defined: "Economics is a science which studies human behaviour as a relationship between ends and scarce means which have alternative uses." It rests on three facts: (i) human wants (ends) are unlimited; (ii) the means (resources) to satisfy them are scarce/limited; and (iii) those scarce means have alternative uses. Together these force choice, so Economics becomes the science of choice and allocation.

Merits (assessment in favour).

1. It is scientific and analytical, based on facts, not judgements.
2. It is universal — scarcity and choice apply to every individual, society and time.
3. It shifts the focus to allocation of scarce resources, which is the heart of the subject.

Criticisms (assessment against).

1. It makes Economics colourless, impersonal and neutral, ignoring human welfare — Keynes and others objected. …