Identify the salient features of Robbins' definition of Economics.
Important characteristics of Robbins’ definition:
(i) Unlimited wants: Human wants are unlimited in number. Whenever one want is satisfied,
then automatically several wants grow up. Hence, it is endless. With the progress
in civilization, developmental sciences and technology numerous wants are
developed. Hence, wants are
‘ever growing and never ending’.
(ii) Limited means: Human wants are unlimited but resources or means to satisfy them are
limited. The means refer to goods and services which we use to satisfy our
wants. They are material and nonmaterial goods like time, money, services,
resources etc. These resources are scarce.
(iii)
Alternative use of resource: All the scarce means can be used for more than one purpose. For instance, land is very scarce but it can be used for construction of buildings, cultivation, playground
etc. Likewise, all these economic resources are used for various purposes.
Thus, in reality goods can be put to alternative uses of varying importance.
(iv) Economising resources: The main problem of economics is how to satisfy the unlimited wants with
limited means which have alternative uses. Robbins describes this problem as
the problem of economising scarce means. In other words, it is the choice of
making of an economic activity.
(v) Problem of choice: The problem of economising resources leads to the problem of choice.
Since wants are numerous and means are scarce, we have to choose the most
urgent wants from these unlimited wants. Hence, the consumer will select few
wants according to his preference pattern. Thus,
scarcity of resources makes the choice necessary. Hence, Economics is termed as
a science of choice.
Important characteristics of Robbins’ definition:
(i) Unlimited wants: Human wants are unlimited in number. Whenever one want is satisfied, then automatically several wants grow up. Hence, it is endless. With the progress in civilization, developmental sciences and technology numerous wants are developed. Hence, wants are ‘ever growing and never ending’.
(ii) Limited means: Human wants are unlimited but resources or means to satisfy them are limited. The means refer to goods and services which we use to satisfy our wants. They are material and nonmaterial goods like time, money, services, resources etc. These resources are scarce.
(iii) Alternative use of resource: All the scarce means can be used for more than one purpose. For instance, land is very scarce but it can be used for construction of buildings, cultivation, playground etc. Likewise, all these economic resources are used for various purposes. Thus, in reality goods can be put to alternative uses of varying importance.
(iv) Economising resources: The main problem of economics is how to satisfy the unlimited wants with limited means which have alternative uses. Robbins describes this problem as the problem of economising scarce means. In other words, it is the choice of making of an economic activity.
(v) Problem of choice: The problem of economising resources leads to the problem of choice. Since wants are numerous and means are scarce, we have to choose the most urgent wants from these unlimited wants. Hence, the consumer will select few wants according to his preference pattern. Thus, scarcity of resources makes the choice necessary. Hence, Economics is termed as a science of choice.
