Question

Explain Marshall’s definition of economics.

Answer 1

Alfred Marshall:

• In his book, ‘Principles of Economics’ published in 1890, Alfred Marshall gives the following definition ‘Economics is the study of mankind in the ordinary business of life’. This definition states that in everyday life people usually aim for material well-being.
• This definition explains economics as the study of routine activities of human beings and aims to explain how they achieve well-being from materialistic things.
• This definition does not have a broad aspect since it only focuses on the material consumption or material wellbeing, yet it is important as it keeps human wellbeing at the centre of human activity.