The main difference between Marshall and Robbins definition is their basis. The basis of Marshall’s definition is the concept of human material welfare, while the basis of Robbin’s definition is the concept of scarcity of resources.
Many prominent economists have defined economics in different ways over the years. Marshall and Robbins definitions are two such accepted definitions of economics.
Key Areas Covered
1. What is Marshall’s Definition of Economics
– Definition, Features, Criticism
2. What is Robbin’s Definition of Economics
– Definition, Features, Criticism
3. Difference Between Marshall and Robbins Definition
– Comparison of Key Differences
Key Terms
Economics, Robbin’s Definition, Marshall’s Definition
What is Marshall’s Definition of Economics
Dr. Alfred Marshall (1842 -1924) is one of the most influential economists in history. He was also one of the first economists to deny the wealth-related definitions of economics created by Adam Smith. He introduced two books, “Principles of Economics” and “Economics of Industry,” which brought the ideas of costs of production, supply and demand, and marginal utility into the light.
Marshall defined economy as follows:
“Economics is the study of humans, in relation to the ordinary business of life. It studies that portion of the personal and social activities, which are closely related to the attainment of material resources, related to welfare and its utilization.”
In this definition, Marshall places a greater emphasis on the human aspect. He clearly explains that it is the study of wealth as well as the study of humans. He also places more importance on means of material welfare. Marshall describes economics as the study of real people and their businesses. However, this definition is very simple and practical.
However, some economics later criticized Marshall’s definition. According to them, this definition ignores the problem of scarce resources as well as the non-material aspects of economics. These critics also claim that this definition does not clearly state the relationship between the acquisition of wealth and welfare.
What is Robbin’s Definition of Economics
Lionel Robbins (1898 – 1984) is another prominent British economist. He challenged Dr. Marshall’s definition of Economics. Robbins described economics as
“the science which studies human behaviour as a relationship between ends and scarce means which have alternative uses”
According to Robbins, human wants are unlimited. When one satisfies one want, another one arises in its place. This cycle goes on forever. Although man’s wants are unlimited, the means to satisfy these wants, i.e., money, time, power, etc., are limited. Therefore, many wants remain unsatisfied. Moreover, Robbins states that man has alternative uses for means. This means man can use the same resource for different purposes. For example, he can use land to build a factory, for agricultural purposes, to build a house, etc.
Some critics state that this definition prevents economics from evaluating macroeconomic concepts like national income and aggregate supply and demand, as well as topics like social choice and social interaction theory.
Difference Between Marshall and Robbins Definition
Definition
Marshall defined economics as “the study of humans, in relation to the ordinary business of life. It studies that portion of the personal and social activities, which are closely related to the attainment of material resources, related to welfare and its utilization”. Robbins, on the other hand, defined economics as “the science which studies human behaviour as a relationship between ends and scarce means which have alternative uses.”
Field
Marshall’s definition considers economics as a social science, while Robbin’s definition considers economics as a human science.
Nature
While Marshall’s definition is simple and practical, Robbin’s definition is more complex.
Base
The basis of Marshall’s definition is the concept of human material welfare, while the basis of Robbin’s definition is the concept of scarcity of resources.
Classifications
In Marshall’s definition, he classified goods as material/non-material and individuals as social/isolated. But Robbins does not use such classifications.
Human Aspect
Marshall gives importance to man while Robbins does not.
Conclusion
In conclusion, the main difference between Marshall and Robbin’s definitions is their basis. The basis of Marshall’s definition is the concept of human material welfare, while the basis of Robbin’s definition is the concept of scarcity of resources. While Marshall’s definition is simple and practical, Robbin’s definition is more complex.
Reference:
1. “Marshall Definition of Economics – Wealth Definition.” Exam Notes, 17 July 2021.
2. “What Is Economics?” Corporate Finance Institute, 31 Jan. 2021.
Image Courtesy:
1. “Alfred Marshall” (Public Domain) via Commons Wikimedia
2. “Lionel Robbins” By LSE library – (No restrictions) via Commons Wikimedia
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