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Answered 2013-04-08 00:32:28

Dr. Marshall is the founder of neo

classical school of thought.His

followers are Cnon,

Pgo,

Preto

and Clark. Marshall cleaned all the black spots from this subject. He wrote a book " Principles of Economics " in 1878 and defined economic in following words:

" Economics is a study of man's action in the ordinary business of life it inquires how he gets his income and how he uses it. It examines that part of an individual and social actions which is mostly closely connected with the attainment and with the use of material requisites of well being. Thus economics is on one side a study of wealth and on the other and important side a part of the study of man ".

MAIN POINTS OF THIS DEFINITION



1.

Economics is interested in human welfare an not in wealth.
2.

It is a social science. A person who is cut away from the society is not the subject of study of economics.
3.

Economics does not study of all the activities of man. It only study ordinary business of life.
4.

Economics is a concerned with the ways in which a man works on Natural Resources for the satisfaction of material wants.

MERITS OF MARSHALL'S DEFINITION



1. COMPREHENSIVE :-


Prof Marshall's definition is more better and comprehensive as compared to the Adam Smith definition.

2. STUDY OF HUMAN LIFE :-


According to this definition of economics studies the human life. So there is a particular objective of this subject which is human life.

3. IMPORTANCE OF SOCIETY :-


According to this definition society has been given much importance and all those people who earn and consume wealth have been discussed.

4. AN-ORDINARY

MAN DISCUSSED :-


Economics is a social science which studies man's social life. Those people who do not perform social activities like saints and mad will not be studied in economics.

5. IMPORTANCE OF WELFARE :-


Marshall stresses on individual and collective welfare. This definition clusters round the welfare.

6. UNEQUAL DISTRIBUTION OF WEALTH PROBLEM :-


Prof. Marshall has also discussed to solve the problem of unequal distribution of wealth.

7. IMPORTANCE TO MAN :-


In this definition man has given primary importance and wealth has been given secondary importance which is used for the prosperity of man.

8. WELFARE THE AIM :-


According to this definition the aim and objective of this subject is the welfare of human being.

Marshall says that economics explains those principles which enable a person to meet his desires by using the wealth. It is very useful for the prosperity of human being.

CRITICISM :-


For a long time this definition was accepted but in 1930 Robbins criticized this definition on the following grounds.

DEMERITS OF MARSHALL'S DEFINITION



1. NARROW SCOPE :-


According to this definition economics is concerned only with those activities which promote only material welfare and it has unnecessarily narrowed the scope of economics.

2. NON MATERIAL SERVICES IGNORED :-


It ignores the non material services like the services of teacher which has an important contribution of economic welfare.

3. NOT CLEAR :-


The distinction made in this definition between ordinary business of life is not clear.

4. SOCIETY IS DISCUSSED ONLY :-


According to this definition economics deal with persons living only in society. It ignores others who may also have an economic problem.

5. CONCEPT OF WELFARE DIFFERS :-


There is no unanimity about the concept of welfare. Ideas about welfare very from time to time place to place and person to person.

6. UN MEASURABLE CONCEPT :-


The measurement of welfare is not possible. One person can not explain that how much quantity of welfare he has received after spending 5$ on cinema ticket.

7. WEALTH CONCEPT IS NOT CLEAR :-


Prof. Marshall has not explained the meaning of wealth clearly.

8. LIMITED CONCEPT OF WEALTH CONSUMPTION :-


Man spends his income on two kinds of necessities. Some are materialistic while the other are non materialistic. But according to this definition non materialistic necessities are out of subject.

9. QUESTION OF LIKES AND DISLIKES :-


Prof. Robbins says that this definition creates the question of likes and dislikes and we are bound to do only those actions which are helpful in the material welfare.

10. INVOLVES VALUE JUDGEMENT :-


In this definition the word "Welfare" involves value judgement but according to Robbins economists are forbidden to pass any verdict

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