Economics By Lionel Robbins

Lionel Robbins claiming his definition of Economics to be precise, scientific and superior defines economics in his well known book "Nature and Significance of Economics, Science" (published in 1931) a "Science which studies human behavior as a relationship between ends and scarce means which have alternative uses."

This definition is based on the following four pillars:
1. Human wants referred to as ends by Robbins are unlimited. They increase in quantity and quality over a period of time. They vary among individuals and over time for the same individual. It is not possible to find person who will say that his want for goods and services has been completely satisfied.
2. The ends or wants are of varying importance. Man satisfies his urgent want first and less urgent after wards in order of their importan,ce.
3. According to Robbins, the unlimited ends and the scarce recourses provide foundation to the field of economics. If all things were freely available to satisfy the unlimited human wants, there would not have arisen any scarcity, hence no economic goods, no need to economies and no economic problem.
4. The fourth important proposition of Robbins definition is that the scarce recourses available to satisfy human wants have alternative uses. They can be put to one use at one time.

Definition of Economics

Economics is social science, which is concerned with the efficient use of scarce recourses to achieve the maximum satisfaction of economic wants. A basic understanding of economics is essential for well-informed people.

An understanding of basics of economic decision making and the operation of economic system enables businessman to increase profit. The businessman who understands when to use new technology, when to merge with another firm, and so on, will be in a position to earn more profit. Economics helps consumers and workers make better buying and employment decisions.

Since economics is a part of social science it includes sociology, psychology and political science. It is a study of how people make choices to satisfy their wants. In economics we examine situations in which individuals can choose how to do things, when to do things and with whom to do them. Ultimately the purpose of economics is to understand choices.