Economics is defined as the study of how humans make choices between unlimited wants and desires with scarce resources that have alternative uses. This definition has some limitations, as it does not account for welfare or social and intelligent behavior, which are important for economic development, especially in developing countries. The definition also takes a limited view and individual behavior is seen as more important than social behavior.

1. FUNDAMENTALS OF
BUSINESS ECONOMICS
{CC 103}
B.COMSEM-I

4. DEFINITION
• According to Prof.Robbins “ Economics is
concerned neither with ‘material means” nor with
“welfare”.
• In his well known book entitled “An essay on the
nature and significance of economic science”
published in 1932,he defined economics as “a
science which studies human behavior as a
relationship between ends and scare means
which have alternative uses”.

5. CHARACTERISTICS OF DEFINITION
• Unlimited ends
• Urgency of wants differ
• Limited resources
• Alternative uses of scare means

6. LIMITATIONS OF DEFINITION
• Welfare is also included
• Limited view
• Regarding economic development
• Social behavior more important than
individual behavior
• Regarding intelligent behavior
• Useless for developing countries

7. THANKYOU
Prepared by
Dr.Jagdish Maheshwari
Assistant Professor,
Tolani Institute of Commerce,Adipur