10 Questions
According to Lionel Robbins, economics is a science that studies the relationship between __________.
Ends and scarce means
What does Lionel Robbins define as 'ends' in economics?
Human wants
Which of the following statements is true about the production of rice and alcoholic drinks based on Robbins' definition?
Production of rice is welfare-promoting while alcoholic drinks are not
Why does Robbins emphasize that resources or means are scarce?
To highlight the need for choices in resource allocation
What aspect of resources makes economics a science of choice according to Robbins?
Their capability of having alternative uses
'Scarcity' in economics is defined as __________.
The limited availability of resources compared to demand
'Welfare' in economics refers to __________.
The promotion of individual and societal well-being
'Economics is neutral between ends' means that __________.
'Economics does not take sides on what should be produced'
'Microeconomic aspects' in economics deal with __________.
'Small scale' resource allocation and price determination
'Macroeconomic aspects' of economics include studying __________.
'Big picture' issues like national income generation
Study Notes
Lionel Robbins' Definition of Economics
- Lionel Robbins published "An Essay on the Nature and Significance of Economic Science" in 1932
- According to Robbins, economics is a science that studies human behavior as a relationship between ends and scarce means which have alternative uses
Key Features of Robbins' Definition
- Ends refer to human wants, which are unlimited in number
- Resources or means are limited or scarce in supply
- Scarcity of a commodity exists when its demand is greater than its supply
- Scarce means are capable of having alternative uses
- Economics, according to Robbins, is a science of choice
Criticism of Robbins' Definition
- Criticized for not distinguishing between goods that promote human welfare and those that do not
- Example: production of rice (promotes human welfare) vs. production of alcoholic drinks (does not promote human welfare)
- Economics is neutral between ends, according to Robbins
Limitations of Robbins' Definition
- Focus on microeconomic aspects (resource allocation and price determination) is limited, as economics also studies macroeconomic aspects (national income generation)
Learn about Lionel Robbins' definition of economics as the study of human behavior in relation to scarce resources and unlimited wants, as outlined in his book 'An Essay on the Nature and Significance of Economic Science' published in 1932.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
