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Marshall’s definition of economics remained an article of faith with all economists from 1830 to
1932. However, with the publication of Robbins book “Nature and Significance of Economic
Science” (1932), there developed a fresh controversy in regard to the definition of economics.
Lionel Robbins, after criticizing the definitions given by the Classical and Neo-classical
economists, gave his own definition of Economics. According to him:
"Firstly, the definition of Economics given by him is superior to that of others because it does not
contain any reference of the term material or welfare. Secondly,it applies as much to the case of
an isolated individual as to the complicated net working of society. Thirdly, it raises the status of
Economics to that of Science Fourthly, it makes Economics a positive science which deals only
with facts, It forbids the economists to pass any value judgment of what is good or bad, right or
wrong, etc.".
Lionel Robbins claiming his definition Economics precise, scientific and superior, defines
Economics book ‘Nature and Significance of Economics Science' (Published in 1932):
"a science which studies human behavior as a relationship between ends and scarce
means which have alternative uses".
Definition of Economics
• Adam Smith defined economics as the study of the wealth of a
nation, with reference to the four categories discussed in his
second book. The full title of this book can be regarded as his
definition of the word economics: "An inquiry into the nature and
causes of the wealth of nations."