ROBBINS DEFINITION OF ECONOMICS

ROBBINS DEFINITION OF ECONOMICS

             Robbins says, “economics is the science which studies human behavior as a relationship between ( multiple ) ends and scare means which have alternative uses”. this definition points out the problem of scarcity and choice in the economic life of the people. Three main points of the definitions are…..

(i) Multiple ends.

(ii) Scare means.

(iii) Alternative uses.

(i) MULTIPLE ENDS: Multiple ends means “no limit to wants”. Human wants or ends are unlimited. They keep on rising or they rise again and again. This means that they do not come again in the evening. Same is the case of wants for radio, t.v, and furniture etc. we always want to replace them with the new and better ones. Since human wants are unlimited , one is compelled to choose between more urgent and less urgent wants which makes economics a science of choice. Hence multiplicity of ends calls for ceaseless efforts for their satisfaction. therefore, never ending cycle of economic activities moves on.

(ii) SCARCE MEANS: There may be no limit to human wants, but the means to satisfy them are definite. The means of resources can be divided into two parts. Firstly the resources in the production sector of the economy i.e. land, labour, capital, entrepreneurship are quite limited because the price of these four factors of production are determined in the market. Secondly, the consumer goods and service produced as a result of the combination of the four factors of production are also limited because they are also priced in the market. This means that resources are limited in the sense that one cannot have goods and services as he wishes for the satisfaction of wants. There is definitely a limit to it.

         Money income represent command on the real resources available in the form of goods and services. Higher the income. Higher will be the available of real resources and vice versa. Since income are always limited, money resources are also limited.

(iii) ALTERNATIVE USES: The third point gathered from Robbins definition is the “alternative” use of resources. What Robbins meant to say is that there are many ways of using the resources. It is always up to the person concerned to give priority to his/her basic wants. For example, a person has got Rs. 1000. With this amount of money he is able to do anything within this limit. He can buy clothes, entertain friend or dine outside with his family, but being a rational human being. He will chose the most optimum use of his limited resources. Supposing, he buys clothes only and postpones the fulfillment of all other wants. This would mean that he has satisfied his want for clothes as an alternative to all other wants which could have been satisfied by an expenditure of Rs. 1000/.

           This is exactly the way all human being pass their life. It gives a clear image of the economic life of the people who are always faced with the problem of scarcity of resources and choice between ands and are forced to make the alternative use of resources.