Q.Explain the scarcity definition of Economics.
You're viewing a preview — the full solution, concept, methods & PYQ mapping are locked.
Start your 14-day free trial to unlock the full solution →Lionel Robbins defined economics as "the science which studies human behaviour as a relationship between ends and scarce means which have alternative uses." The definition is built on unlimited wants, scarce means, alternative uses of means, and the resulting need to choose. It makes economics a positive science of choice but has been criticised for being too narrow and for ignoring growth and welfare.
Robbins's definition
In his book An Essay on the Nature and Significance of Economic Science (1932), Lionel Robbins defined economics as:
"Economics is the science which studies human behaviour as a relationship between ends and scarce means which have alternative uses."
Features of the definition
The definition rests on four basic propositions:
- Unlimited ends (wants): human wants are numerous and never fully satisfied. As one want is satisfied, another arises.
- Scarce means: the resources available to satisfy these wants are limited in supply relative to the wants.
- Alternative uses of means: the scarce resources can be put to more than one use (land can grow wheat or rice), so using them one way means giving up another.
- The problem of choice: because wants are unlimited but means are scarce and have alternative uses, people must choose how to allocate resources. Economics is therefore a science of choice or a science of economising.
Merits
- It is analytical and scientific, free from value judgements (positive science).
- It is universal - the scarcity problem applies to all societies, rich or poor.
- It highlights the central economic problem of allocation of scarce resources.
Criticism
…
Unlock everything free for 14 days
- Full step-by-step solutions
- Concept-first explanations
- Methods, shortcuts & mistakes
- PYQ mapping + timed mock tests
Full access for 14 days. No credit card required.