Unit 1: 1.3 - MODERN SCHOOL OF THOUGHT "Economics is the Science of Scarcity and Choice" Prof. Lionel Robbins thus defined economics in the following four fundamental propositions that constitute the basis of the structure of economic science. 1. Human wants or ends are unlimited. 2. Human wants are different in importance. 3. Resources to fulfil human wants are limited. 4. Resources have alternative uses. 1. Wants or Ends are Unlimited: Human beings have wants which are unlimited in number. If one want is satisfied another crops up. If wants had been limited, they would have not and all incentives to economic effort would have ceased. 2. Wants or Ends vary in Importance: Human wants are not of equal importance because these are uncountable. Therefore, they compel us to choose between more urgent and less urgent ones. 3. Resources are Scarce: To satisfy unlimited wants people have limited economic resource. These resources are various types of labour Capital, land and entrepreneurship used in producing goods services. Since these resources are limited, the ability of the community to produce goods and services is also limited. 4. Resources have Alternative Uses: The limited resources are capable of alternative uses. As wants are varying in importance, some are more urgent and others less urgent. Therefore, resources should be used selectively to the most urgent wants firstly, so choice comes again. Keeping all the above points in view, it can simply be stated in the following words: "Economics is a science which is the study of those principles on which the resources of a community should be so regulated and administrated as to secure the communal ends without waste." According to Prof. Lionel Robbins "Our economics holds good under barter as well as under money exchange, under individual as well as under social human conduct, under capitalist as well as under socialist society." The followers of Lionel Robins' like Wicksteed, Schonfeld, Hans Mayhers, Carl Manger, Strigler, Fetter, Schaffle, Spaan, Cohen, Oppenheimer, Maxweber, Voigt etc. also called economics as "a science of scarcity and choice." All of them are of the view that resources as compared to desires are limited and economic problem is that how these limited resources can be used to satisfy maximum desires. According to Prof. Stigler "Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of allocation is to maximize the attainment of the ends."

1. Unit 1: 1.3 - MODERN SCHOOL OF THOUGHT
"Economics is the Science of Scarcity and Choice"
Prof. Lionel Robbins thus defined economics in the following four fundamental propositions
that constitute the basis of the structure of economic science.
1. Human wants or ends are unlimited.
2. Human wants are different in importance.
3. Resources to fulfil human wants are limited.
4. Resources have alternative uses.
1. Wants or Ends are Unlimited:
Human beings have wants which are unlimited in number. If one want is satisfied another
crops up. If wants had been limited, they would have not and all incentives to economic effort
would have ceased.
2. Wants or Ends vary in Importance:
Human wants are not of equal importance because these are uncountable. Therefore, they
compel us to choose between more urgent and less urgent ones.
3. Resources are Scarce:
To satisfy unlimited wants people have limited economic resource. These resources are
various types of labour Capital, land and entrepreneurship used in producing goods services.
Since these resources are limited, the ability of the community to produce goods and services
is also limited.
4. Resources have Alternative Uses:
The limited resources are capable of alternative uses. As wants are varying in importance,
some are more urgent and others less urgent. Therefore, resources should be used selectively
to the most urgent wants firstly, so choice comes again.
Keeping all the above points in view, it can simply be stated in the following words:

2. "Economics is a science which is the study of those principles on which the resources of a
community should be so regulated and administrated as to secure the communal ends without
waste."
According to Prof. Lionel Robbins
"Our economics holds good under barter as well as under money exchange, under individual
as well as under social human conduct, under capitalist as well as under socialist society."
The followers of Lionel Robins' like Wicksteed, Schonfeld, Hans Mayhers, Carl Manger,
Strigler, Fetter, Schaffle, Spaan, Cohen, Oppenheimer, Maxweber, Voigt etc. also called
economics as "a science of scarcity and choice."
All of them are of the view that resources as compared to desires are limited and economic
problem is that how these limited resources can be used to satisfy maximum desires.
According to Prof. Stigler
"Economics is the study of the principles governing the allocation of scarce means among
competing ends when the objective of allocation is to maximize the attainment of the ends."