Question

Explain the salient features of Marshall’s definition of economics.

Answer 1

1. Study of Economic Activities of Mankind: Economics, according to Marshall, is fundamentally a study of human beings and their economic actions. It investigates how individuals and society behave in their ordinary business of life, focusing on activities related to earning and using wealth.
2. Emphasis on Human Welfare (Material Welfare): Marshall gave more importance to human welfare rather than wealth itself. He viewed wealth merely as a means to achieve material well-being, not as an end in itself. Wealth is for man, not man for wealth.
3. Study of Ordinary Business of Life: Economics is concerned with the usual, everyday economic activities of people, how they obtain their income, and how they spend it. Thus, the definition highlights the practical, day-to-day nature of economic behavior.
4. Material Welfare Measured by Money: The definition focuses on material welfare, which can be measured in terms of money. Economics examines the attainment and use of material requisites of well-being, considering wealth as a tool to promote welfare.
5. Wealth as Means, Welfare as End: In Marshall’s view, wealth occupies a peripheral position, and human beings (welfare) are central. This reflects a shift from earlier “wealth-centered” definitions to a welfare-centered approach.