Definition of Wealth – Adam Smith (1776)
Adam Smith - “Economics is the science of wealth”
This definition was given by Adam Smith.
He is also known as the ‘father of economics.
According to this definition, economics is a science of the study of wealth only.
It deals with production, distribution, and consumption.
This wealth-centred definition deals with the causes behind the creation of
wealth.
Definition of Welfare – Alfred Marshall (1890)
Alfred Marshall
“Economics is the study of man in the ordinary business of life”
This definition was put forward by Alfred Marshall.
According to Alfred Marshall, economics is the study of man in the ordinary
business of life.
It examines how a person gets his income and how he invests it.
Thus, on one side, it is a study of wealth.
On the other most important side, it is a study of well-being (welfare).
Definition of Scarcity – Lionel Robbins (1932)
Lionel Robbins
Economics is the aspect of scarcity in all economic behaviour
This definition was put forward by Lionel Robbins.
According to him, economics is a science that studies human behaviour as a
relationship between end and scarce means that have alternative uses.
Features:
The wants of a human are unlimited.
It has an alternative use of scarce resources.
It is an efficient use of resources.
It is needed for optimisation, i.e., best allocation of resources.
Definition of Growth – Paul. A. Samuelson (1948)
Paul. A. Samuelson
