Q.Critically examine the Scarcity definition of Economics given by Lionel Robbins.
Lionel Robbins' 1932 definition states: "Economics is a science which studies human behaviour as a relationship between ends and scarce means which have alternative uses." It rests on four elements — unlimited ends, scarce means, alternative uses of those means, and the differing priority of ends — which together force choice. This is why Robbins' view is often called the scarcity or choice-based definition.
Contributions: Robbins freed Economics from Marshall's restriction to "material" welfare, making the subject applicable to any decision involving scarcity — whether a household's budget, a firm's production plan, or a state government's allocation of funds among health, education and irrigation in Andhra Pradesh. It also gave Economics a positive, value-free, scientific character, separate from ethical judgements about what "ought" to be produced.
Criticisms: (i) It is too general and abstract, and in freeing itself from "welfare," it loses the human, ethical concern that Marshall's definition carried; (ii) it is essentially a microeconomic definition, well suited to explaining an individual's or firm's choice problem but largely silent on aggregate, economy-wide questions such as national income, general unemployment, and economic growth — concerns that became urgent after the Great Depression of the 1930s; (iii) by treating Economics as a purely neutral science of means, it says nothing about poverty, inequality or the desirability of a particular allocation, which is precisely what later economists like Samuelson tried to bring back in.
Robbins' scarcity definition gave Economics a universal, scientific, choice-based character, but it is criticised for being too abstract, value-free, and essentially microeconomic — weaknesses that Samuelson's growth-oriented definition later tried to address.
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