RBSE Solutions for Class 11 Economics Chapter 1 Meaning and Definitions of Economics
RBSE Solutions for Class 11 Economics Chapter 1 Meaning and Definitions of Economics
Rajasthan Board RBSE Class 11 Economics Chapter 1 Meaning and Definitions of Economics
RBSE Class 11 Economics Chapter 1 Text book Questions
RBSE Class 11 Economics Chapter 1 Multiple Choice Questions
Question 1.
Who gave the Wealth-centered Definition?
(a) Marshall
(b) Samuelson
(c) Adam Smith
(d) Robbins
Answer:
(c) Adam Smith
Question 2.
Who gave the economic welfare related definition of economics?
(a) Robbins
(b) Pigou
(c) J. K. Mehta
(d) All of these
Answer:
(b) Pigou
Question 3.
“Economics is a study of economic welfare”. This definition is related with
(a) Wealth-centered definition
(b) Economic development-related definition
(c) Welfare-centered definition
(d) Scarcity-centered definition
Answer:
(c) Welfare-centered definition
Question 4.
Relation of human’s unlimited wants with limited resources is shown in to definition?
(a) Wealth-centered definition
(b) Economic-growth related definition
(c) Scarcity-centered definition
(d) Welfare-related definition
Answer:
(c) Scarcity-centered definition
Question 5.
Which economist agrees that economics is a Positive science?
(a) Marshall
(b) Pigou
(c) Robbins
(d) J.S.Mill.
Answer:
(c) Robbins
RBSE Class 11 Economics Chapter 1 Very Short Answer Type Questions
Question 1.
Explain the thoughts of Marshall on Economics.
Answer:
According to the Marshall, “Economics is a study of the ordinary business of life. It examines that part of the personal and social actions which is most closely connected with the attainment and consumption of material requisites of well-being.”
Question 2.
Give the wealth-centred definition of economics given by Adam Smith.
Answer:
According to Adam Smith, “Economics is the science of wealth”.
Question 3.
Give the scarcity-related definition of economics.
Answer:
“Economics is a science that studies human behaviour that is related to human wants on the limited means (resources) which have multiple utilities”.
Question 4.
Marshall described economics as which type of science?
Answer:
Marshall explained economics as a social science.
Question 5.
Which economist defined economics as the science of selection?
Answer:
Robbins has defined economics as a science of choice.
Question 6.
According to Robbins economics is which type of science?
Answer:
Economics is a science of choices according to the Robbins.
Question 7.
What is J.K.Mehta’s definition of economics based on ‘Wantlessness’?
Answer:
Mehta has defined Economics as, “a science which studies human behaviour as a means to end wantlessness.
RBSE Class 11 Economics Chapter 1 Short Answer Type Questions
Question 1.
Write any two criticisms of wealth-related definition?
Answer:
- Excessive emphasis on wealth :
In the wealth related definition excessive emphasis is laid on wealth. Wealth has been assumed to be the objective. However, earning wealth is not an end in itself but a means. - Hypothesis of economic man is in a appropriate :
According to ancient economists, man works on being inspired by wealth or by his selfish interests. However, in fact this thought is erroneous. In fact, humans not only work for money but, man is also inspired by human feelings, such as compassions, love, etc.
Question 2.
According to Marshall, “The main subject of economics is human welfare and not wealth.” Explain this.
Answer:
According to Marshall the objective of economics is not only the analysis of the nature and the origin of wealth. A more important objective than the creation of wealth is to fulfill our needs through the use of wealth and to increase our physical welfare. Marshall laid more emphasis on the economic welfare of man than on wealth.
Question 3.
What is an economic problem according to Robbins?
Answer:
According to Robbins, human needs are infinite and unlimited. For the fulfillment of these requirements, man has limited time and money, so that man needs to make a choice from these wants. Because these means can be used alternatively, so the usefulness of the tools increases and humans have to choose between different needs, due to which the economic difficulty persists forever.
Question 4.
Mention any two similarities between the definitions of Marshall and Robbins.
Answer:
- Marshall, in his definition, has assumed maximum welfare as central point of economics, while Robbins has mainly focused on economical utilisation of resources. But both these human tendencies lead towards a common ultimate objective of ‘Maximum satisfaction’.
- The word ‘Wealth’ has been used in Marshall’s definition, while Robbins has used the expression ‘limited resources’. To a certain extent, both terms have been used in the same implication, since ‘limitation’ is a major characteristic of’wealth’.
Question 5.
Explain any three differences between Marshall’s and Robbins’ definition?
Answer:
- Difference in definition format Marshall’s definition is sectional, while the definition of Robbins is analytical.
- Difference in contents Marshall in his definition has included a study of wealth in reference to actions that are related to earning money and spending money, while Robbins studied human behaviour related to choice in economics.
- Form of economics According to Professor Marshall, economics is a social science, while Robbins considers economics to be a human science.
Question 6.
What are the main elements of the development-based definition of economics?
Answer:
The key elements of development-based definition are the following:
- More importance has been given to human habits of selection and limitation of resources (means).
- Under the barter system, the problem of distribution of resources (means) has been considered important.
- Both Marshall’s and Robbins’ definitions have been included in the developmental (evolutionary) definitions.
- The developmental definition has a dynamic perspective.
RBSE Class 11 Economics Chapter 1 Long Answer Type Questions
Question 1.
Write down a critical analysis of Marshall’s and Robbins’ definitions.
Answer:
Major criticism of Marshall’s definition is as follows Marshall’s definition was welfare centred and thus has following criticism
- Classification of resources on the basis of physical and non physical nature :
Marshall limited the study of the subject-matter of economics to the acquisition and consumpition of physical economics. But in reality, there are non-material resources also, like, the savicies of needs to bed doctors, engineers, labour, advocates etc., who create resources through their services and study of these services is done under economics. - Economics is not a social science only :
Assuming economics as only social science shall be inappropriate, because concepts of economics are such that they apply to people within and outside the society equally. Hence, economics is a human science. - Relating economics with the physical welfare is inappropriate :
According to Robbins, “economics may be related to anything but it is certain that it is not related to the causes of public welfare. Robbins believed the welfare related approach to be faulty on certain grounds- Many activities like production of psychotropic substances and their use is not in the best interest of human welfare, but that is studied as a part of economics.
- There is no evidential parameter for welfare. Currency cannot be treated as an evidential parameter for welfare because welfare is a psychological and emotional expression.
- Economics is a Positive Science :
When economics is related to welfare, it means that the economists have to decide on pros and cons of economic activities, which relates to normative science. Robbins treat economics as positive science, which does not decide about what is wrong, but rather it studies according to the situation. - Scope of economics is skewed :
In economics, negligence of the acquisition and consumption of non-physical sources, study of anti social, uncommon and non-economic activities have become the reason for its criticism.
Economists do not treat the definition of Robbins as flawless. Salient criticisms of this definition are as follows :
- Making the scope of economics wider than human wants :
Prof. Robbins, by stating economics as human science, has deemed the alternative aspect of all human activities as the subject matter of economics. Henceforth, the scope of the study of economics has widened and demonstration of economic principles, analysis and investigation of problems have become too complex. - Inadequate concentration on social character of economics :
According to Robbins, activities of people living outside the society are also studied. But economics is needed only when the economic problems become socially important and activities of one group of human beings affect the other group. - Economics is not a value theory only :
Robbin’s definition of economics is restricted to the distribution of resources in producing various goods and consequently, and how the value and price of such goods is fixed. But scope of economics is much wider than mere allotment of resources and determining of values. - Neutrality towards objectives :
Robbins has written “Economics is related only to resources. He has not clarified how objectives will be set, for which limited resources are used. If we are not aware about the objectives, then we cannot ensure maximum utilization of limited resources. - Economics is not only a real science but also an art :
If economics is assumed as real science it will merely remain as a science of building principles, but critics believed that the responsibility of economics is not restricted to building the equipment, but also throwing light on the process of using that equipment. - Definition is situational :
Prof. Robbins treats accomplishments as given and stable and believes that a coordination is established between those accomplishments and sources but in realolife, both keep choosing. - Reason of economic problems :
Scarcity gives birth to economic problems- This statement of Robbins is not completely true. According to critics, economic problems arise not only due to scarcity or they being limited, but also due to they being excessive/ ample.
Question 2.
Write down a critical analysis of Welfare-centered definition?
Answer:
Marshall’s definition was welfare centred and thus has following criticism
- Classification of resources on the basis of physical and non-physical nature :
Marshall limited the study of subject-matter of economics to the acquisition and consumption of physical resources. But in reality, there are non material resources also like; doctors, engineers, labour, advocates etc, who acquire resources by the of their services and study of these services is done under economics. - Economics is not social science only :
Assuming economics as only social science shall be inappropriate because the rules of economics are such that they apply to people within and outside the society equally. Hence, economics is a human science. - Relating economics to physical welfare is inappropriate :
According to Robbins, economics may be related to anything but it is certain that it is not related to the causes of public welfare. Robbins believed the welfare related approach to be faulty on certain grounds- Many activities like production of psychotropic substances and their use is not in the best interest of human welfare, but that is studied as a part of economics.
- There is no evidential parameter for welfare. Currency cannot be treated as an evidential parameter for welfare because welfare is a psychological and emotional expression.
- Economics is a Positive Science :
When economics is related to welfare, it means that the economists have to decide on pros and cons of economic activities, which relates to normative science. Robbins treats economics as positive science, which does not decide about what is wrong, but rather it studies according to the situation. - Scope of economics is skewed :
In economics, negligence of the acquisition and consumption of non-physical sources, study of anti social, uncommon and non-economic activities have become the reason for its criticism.
Question 3.
Explain the similarties and dissimilarties between Marshall’s and Robbins’ definition.
Answer:
Similarities between Marshall’s and Robbins’ definitions :
- Both Marshall and Robbins in their respective definitions have treated economics as science.
- Both the economists have given priority to the humans first and then, resources.
- In Marshall’s theory, the central point is maximum welfare, whereas Robbins has mainly focused on economization. But the tendency of both the economists is one i.e. maximum satisfaction.
- In Marshall’s definition, the word ‘wealth’ is used, whereas in Robbins’ definition, limited resources has been used. To an extent, both these words are used in context to similar meaning because scarcity is a major characteristic of wealth.
- Prof. Robbins stated that limited resources need to be used very cautiously so that there could be maximum production for the interest of maximum people. Whereas, Prof. Marshall regarded it as maximum welfare.
Difference between the two definitions
- Difference in nature of definition :
Marshall’s definition about economics is classificatory, whereas Robbins’ definition about economics is analytical. Marshall explained all the activities, either physical or non-materialist, economic or non-economic in normal life business as a subject of economics, whereas Robbins didn’t separate different activities, rather, he included the study of making choice in the subject matter of economic problem. - Difference in contents :
Marshall included in economics those monetary activities which are related to earning money and use of money whereas, Robbins studied about selection of human behaviour and regarded this process of selection to be an economic aspect or economic problem. - Form of Economics :
According to Prof. Marshall economics is a social science in which he mentions the economic activities of only those people who live in the society, whereas, according to Robbins’ definition, economics is a human science which studies selection behaviour of human beings. - Differences in classification of resources :
Marshall included only economic resources in the study of economics whereas Robbins included all such physical and non-material resources which are scarce. - Nature of Economics :
Marshall agrees that economics is positive science and normative science and he also classified economicsm in arts. Whereas Robbins mentioned economics as empirical Science. - Difference in Objective :
Prof. Marshall explained that objective of economics is growth in welfare of human, whereas according to Robbins there are no such objectives in economics and also stated that there is no link between human welfare and economics.
Question 4.
Examine the criticisms of Economic Growth definition ? Explain the Indian ideology related to this.
Answer:
Today’s age is the age of growth. Therefore, along with, the subject metter of economics its definitions are also changing. Modem Nobel prize winning economists, including Prof, Samuelson, Peterson, Ferguson and others have also defined economics on the basis of growth. Samuelson has given more priority to the human habits of selection and limitation of resources, but he hasn’t given any importance to the means according to the desires of the people. Neither has he considered allocation of means as important nor has given any measures to overcome this problem.
He has only pointed out the problems but has not found their solutions. Samuelson has not stated anything new in the thinking of development. Marshall’s and Robbins definition includes that. K. G. Seth has also emphasized more on the means like Samuelson. They have neither emphasized on money, nor on financial welfare. They have only focused on the development of meAnswer:The economists who have given the development-related definitions have majorly focused on the meAnswer:They have not linked economics with human welfare, physical welfare and economic welfare.
Indian ideology on development-related definitions :
The definition of Prof. Mehta on the basis of Indian philosophy, civilization and culture is very different from the rest of the world. In the opinion of the western economists, economic growth implies satisfaction of needs, but according to the Indian ideology satisfaction is not derived from fulfillment of maximum needs, but by eliminating the wants. According to the Indian ideology, due to the unlimited wants, they can never be fulfilled. Therefore, the level of wantlessness can only be increased by eliminating or decreasing the unlimited wants.
Question 5.
“Economics was a science of wealth, but now it is a science of human beings.” Explain this statement.
Answer:
Professor Adam Smith in the book (An Enquiry into the Nature of Wealth of Nations) published in 1776, considered economics as a science of wealth. All the classical economists believed that the ultimate purpose of human economic activity was to earn wealth. Due to giving more emphasis on the study of wealth, many delusional ideas have arisen in respect to economics. It came to be understood that economics tells man to be excessively attracted towards ‘money’, but in the beginning of the 19th century itself, some economists started saying that money is only a means for betterment of human life.
Professor Robbins called economics a human Science. It tells us how to use the limited resources in the best way. By keeping in mind the desires of humans. The science of wealth was an initial ideology of economics, but with the change of time, the definition of economics also changed. Now it started to be considered a human science To meet the requirements, the resources (time and money) are limited to humans. Humans have to choose among the needs in such a situation, which shows the study of human beings. To meet the unlimited needs of human beings, economics is just about coordinating with limited resources. So, with the change of time, economics became a ‘study of humans’ rather than ‘science of wealth’.
Question 6.
Critically explain the scarcity centred definition of economics.
Answer:
The definition of “Scarcity” was given by Robbons. Economists do not treat the definition of Robbins as flawless. Salient criticisms of this definition are as follows
- Making the scope of economics wider than the wants :
Prof. Robbins, by defining economics as human science, has deemed the alternative aspect of all human activities as subject matter of economis. Henceforth, the scope study of economics has widened and demonstration of economic principles, analysis and investigation of problems have become too complex. - Inadequate concentration on social character of economics :
According to Robbins, activities of people living outside the society are also dwelt upon. But economics is needed only when the economic problems take the form of social importance and activities of one group of human beings affect the other groups. - Economics is not only a value theory :
Only that part of Robbin’s definition has been studied which elaborates how the distribution of resources has been done in producing various goods and consequently, how is the value and price of such goods fixed ? But scope of economics is much wider than mere allotment if resources and setting of values. - Neutrality towards objectives :
Robbins has written “Economics is not only related to sources, but also how objectives will be set, for which limited resources are used. If we are not aware about the objectives, then we cannot ensure maximum utilization of limited resources. - Economics is not only a real science but also an art :
If economics is assumed to be a real science it will merely remain as a science of building principles, but critics believed that the responsibility of economics is not restricted to building the equipment, but also throwing light on the process of using that equipment. - Definition is situational :
Prof. Robbins treats accomplishments as given and stable and believes that a coordination is established between those accomplishments and sources. - Reason of economic problems :
Scarcity gives birth to economic problems-this statement of Robbins is not completely true. According to critics, economic problems arise not only due to scarcity, or they being limited, but also due to excessive availability.
RBSE Class 11 Economics Chapter 1 Other Important Questions
RBSE Class 11 Economics Chapter 1 Objective Type Questions
Question 1.
Who has called economics the ‘queen of social science’?
(a) Adam Smith
(b) Marshall
(c) Samuelson
d) Pigou
Answer:
(c) Samuelson
Question 2.
How are the resources described in the view of economics?
(a) Scarce
(b) Unlimited
(c) Sufficient
(d) More
Answer:
(a) Scarce
Question 3.
In terms of economics, how are needs described?
(a) Scarce
(b) Unlimited
(c) Equal
(d) More
Answer:
(b) Unlimited
Question 4.
“Where there are 6 economists, there are 7 opinions,” Who said this?
(a) Marshall
(b) Pigou
(c) Mrs. Barbara Wotten
(d) Samuelson
Answer:
(c) Mrs. Barbara Wotten
Question 5.
Who wrote the book, “An Enquiry into the Nature and Causes of Wealth of Nations”?
(a) Marshall
(b) Samuelson
(c) Adam Smith
(d) Pigou
Answer:
(c) Adam Smith
Question 6.
“Economics is the science of wealth”, who said this?
(a) Adam Smith
(b) Pigou
(c) Samuelson
(d) Marshall
Answer:
(a) Adam Smith
Question 7.
When was the book”An Enquiry into the Nature and Causes of Wealth of Nations” published?
(a) 1776
(b) 1881
(c) 1907
(d) 1700
Answer:
(a) 1776
Question 8.
Which economist gave more emphasis on the economic welfare of humans in stead of wealth?
(a) Smith
(b) Pigou
(c) Marshall
(d) Robbins
Answer:
(c) Marshall
Question 9.
Who wrote the book, ” An Essay on the Nature and Significance of Economic science”.
(a) Smith
(b) Robbins
(c) Pigou
(d) Marshall
Answer:
(b) Robbins
Question 10.
According to Robbins, what kind of science is economics?
(a) Idealistic Science
(b) Enpirical Science
(c) Physical Science
(d) All of these
Answer:
(c) Physical Science
RBSE Class 11 Economics Chapter 1 Very Short Answer Type Questions
Question 1.
On which two bases is the framework of economics built?
Answer:
- Resources
- Necessities
Question 2.
“Where there are 6 economists, there are 7 opinions,” Who said this?
Answer:
Mrs. Barbara Wotten.
Question 3.
Which economists have given wealth-centred definitions?
Answer:
Economist like Prof. Adam Smith, J.B.Say. Walker, etc.have given the wealth-centred definitions.
Question 4.
Write the name of Adam Smith’s Book.
Answer:
“An Enquiry into the Nature and Causes of Wealth of Nations.”
Question 5.
Mention the definition of economics given by Adam Smith.
Answer:
“Economics is the science of wealth.”
Question 6.
“Economics is that body which relates to wealth.” Which economist has given this definition?
Answer:
This definition was given by economist Walker.
Question 7.
What did all the classical economists believe about economics?
Answer:
All the classical economists believed that the ultimate purpose of human economic activity is to earn money.
Question 8.
What did Marshall emphasize in his definition of economics?
Answer:
Economic welfare and wealth.
Question 9.
According to which economist, economics is the study of material welfare?
Answer:
Marshall
Question 10.
Who said this, ” Money is for man and not man for money.”?
Answer:
Marshall
Question 11.
What is the name of Robbins’ Book?
Answer:
“An essay on Nature and Significance of Economic Science.”
Question 12.
Who called the welfare centric definition narrow and misleading?
Answer:
Robbins
Question 13.
Who criticized the definition given by Marshall and his supporting economists?
Answer:
Robbins
Question 14.
According to Robbins, what kind of science is economics?
Answer:
Empirical Science
Question 15.
What is the cause of the problem of selection?
Answer:
Limited availability of economic resources.
Question 16.
What is the center point in Marshall’s definition?
Answer:
Marshall has considered maximum welfare as the centre-point in his definition.
Question 17.
What kind of resources have been included by Marshall in economics?
Answer:
Physical resources.
Question 18.
According to Professor Marshall, what kind of science is economics?
Answer:
According to Professor Marshall, economics is a social science.
Question 19.
What kind of science is economics according to Robbins?
Answer:
Robbins considered economics as a human science.
Question 20.
What has Robbins said about the selection process?
Answer:
Economic problem.
Question 21.
Who gave the definition of ‘wantlessness’ of economics?
Answer:
Professor. J.K.Mehta
Question 22.
Why are economists not unanimous with regard to the definition of economics?
Answer:
Economists are not unanimous with regard to the definition of economics due to the variation in the nature of economic actions and the continuous changes in them.
Question 23.
Into how many areas is the definition of economics divided?
Answer:
For the simplicity of its study, the definition of economics is divided into five major parts.
Question 24.
Tell the names of two economists who agree with the idea of Adam Smith?
Answer:
J.B.Say and Walker agreed with Adam Smith’s ideas.
Question 25.
What do classical economists believe?
Answer:
The classical economists believed that the ultimate purpose of man’s economic actions is to make money.
Question 26.
Why does Robbins consider economics as an empirical science?
Answer:
Robbins thinks economics to be a an empirical science because it does not make any judgement regarding good and evil, but studies a situation just as it is.
Question 27.
It is unfair to consider economics as just a social science. Why?
Answer:
Because economic rules are such that apply to people living in society in the same manner as to those living outside the society.
Question 28.
It is only after attaining mental balance, that a person feels happy. Who said this?
Answer:
Professor. J.K.Mehta
Question 29.
Professor J.K. Mehta, a well-known economist, was working at which university?
Answer:
Allahabad University
Question 30.
Who has considered economics as a study of the physical welfare of humans?
Answer:
Marshall has considered economics as a study of the physical welfare of humans.
Question 31.
Who were the supporters of welfare-centric definitions?
Answer:
Marshall, Pigou, Stuart Mill, etc were the supporters of welfare-centric definition.
Question 32.
Write two criticisms of Professor Mehta’s approach towards economics.
Answer:
- Difficult to even think about the existence of a wantless person.
- The concept of maximum happiness is not correct
Question 33.
Define economics according to J.B.Say.
Answer:
According to J.B.Say, ” Economics is the science which studies wealth.”
RBSE Class 11 Economics Chapter 1 Short Answer Type Questions
Question 1.
Why was the wealth-centred definition of economics criticized?
Answer:
Due to excessive emphasis on the study of wealth, many confusions had arisen about economics. It was infened from that perspective that economics assunes man is to be attrected only by money. But in the beginning of the 19th century, some economists said that money is only a means for human life, so it is an inappropriate analysis of economics.
Question 2.
Explain two criticisms of wealth-related definitions.
Answer:
- More focus on wealth :
In these definitions, more focus was laid upon wealth. Wealth was accepted as a goal of life, while gain of wealth is merely a resource and not an end, by which humans fulfill their wants. - Imagination of human wealth :
According to ancient economists, humans work either by getting motivated to earn wealth or due to self-interests. However, this thought is wrong. In fact, humans not only work by getting motivated to earn wealth, rather, they also work by getting motivated by other human feelings (like compassion, love and tolerance etc.)
Question 3.
Give the ‘welfare-centred’ definition of Marshall.
Answer:
According to Marshall, “Economics is the study of general ocupations of humans. In this view evaluation of such part of personal and social activities is done, which is intentionally, associated with obtaining and consuming the resources of physical welfare.”
Question 4.
What is the meaning of economic problem or the problem of choice?
Answer:
When one need of human gets fulfilled, another one arises. Therefore, needs of the human are unlimited. But the means to fulfill these needs are limited and also these limited means have some other uses too. Therefore, the problem arises of what need to fulfill at first. This problem is termed as the problem of choice and economic problem by Adam Smith.
Question 5.
What is the meaning of scarcity of the resources or means?
Answer:
When the quantity of resources of creation of wealth, i.e. land, labour, capital, etc. is less than the demand, it is called the scarcity of resources (means). This limitation further increases when these resources have alternative uses. In such, situation, man is constrained to think as for which need should these resources be used, and which need to defer for later time to fulfill.
Question 6.
State the definition of economics given by Pigou.
Answer:
According to Pigou “Economics is a study of economic welfare and is restricted to that part of economic welfare which can be directly or indirectly related to the parameters of currency”.
Question 7.
State two points of definition of Marshall.
Answer:
Following are the two criticisms of definitions based on physical welfare :
- More significance to human beings than wealth :
Marshall gave more importance to human welfare than wealth. According to him ‘wealth is for human and not human for wealth’ meaning thereby, that human welfare is more significant. - Social, normal and empirical study of human life :
In economics, the economic activities done by a social, normal and a real human are studied. Economics does not include activities of a person in solitude, a saint or an insane person, etc.
Question 8.
State the two criticisms of the definitions based on physical welfare.
Answer:
- Classification of resources on the basis of physical and non-physical nature :
Marshal limited the study of subject-matter of economics of physical resources to their acquisition and consumption. But in reality, there are non-material resources also like the services of; doctors, engineers, labour, advocates etc., who acquire resources through their services and study of these services is done under economics. - Economics is not a social science only :
Assuming economics as a social science only shall be inappropriate because rules of economics apply to people within and outside the society equally. Hence, economics is a human science.
Question 9.
Economics is a human science. How?
Answer:
Economic rules that are the subject matter of economics apply to people who live in society in the same way as to people living outside the society.
Question 10.
On what basis did Robbins consider the welfare-centric ideology as faulty?
Answer:
Robbins has considered the welfare-centric ideology as faulty on the following grounds:
- Many actions such as the production of drugs and their use are not in the interest of human welfare, yet they are studied in economics.
- There is no standard measure of welfare. Money cannot be considered as a valid measure of welfare, because welfare is a psychological and emotional expression.
Question 11.
Explain the scarcity-centric definition of Robbins.
Answer:
The. scarcity-centric definition of Robbins has the following four key points:
- Human wants are infinite and unlimited.
- Man has limited resources to meet the unlimited requirements. In such a situation, a person has to choose among his wants.
- These resources can have alternative uses. So, the scarcity of the resources increases.
- There is a difference in the intensity of the necessities – the intensity of human needs is not the same. Some needs are more intense and some less intense. The varying intensity of the needs, helps in making choices between them.
Question 12.
Explain any two criticisms of the scarcity-centric definition of Robbins.
Answer:
Following are the two criticisms of the scarcity-centric definition
- Making the scope of economics wider than the wants :
Prof. Robbins, by stating economics as human science, has deemed the alternative aspect of all human activities as subject matter of economics. Hence, the scope study of economics has widened and demonstration of economic principles, and analysis and investigation of problems have become too complex. - Economics is not only a value theory :
Only that part of Robbins’ definition has been studied which elaborates how the distribution of resources has been done in producing various goods and consequently, how the value and price of such goods is set? But the scope of economics is much wider than mere allotment of resource and setting of values.
Question 13.
Write four similarities in the definition of Robbins and Marshall.
Answer:
The definitions of Robbins and Marshall have the following similarities:
- Both Marshall and Robbins considered economics as a science in their definition.
- Both Marshall and Robbins have given an important position to humans in the study of economics, assuming the human as primary and the means as secondary.
- Marshall has considered maximum welfare as centre point in his definition, while Robbins has given prominence in his definition to scarcity.
- The word ‘wealth’ is used in Marshall’s definition, while Robbins has used the term ‘limited resources’ to a point, these two words are used in the same sense, because scarcity is a main attribute of money.
Question 14.
Write four dissimilarities in the definitions of Robbins and Marshall.
Answer:
Following are the four dissimilarities in the definitions of Robbin and Marshall
- Difference in definition format :
Marshall’s definition is sectional, while Robbins definition is analytical. - Difference in subject matter :
In his definition, Marshall has included a study of wealth-related activities that are related to earning money and spending money. While Robbins has studied human behaviour of choice in economics. - Form of economics :
According to Professor Marshall, economics is a social science, while Robbins has considered economics as a human science. - Differences in the classification of resources :
Marshall has only incorporated physical resources into the study of economics, while Robbins has incorporated all the resources into his definition of economics, physical and non-physical, which are scarce.
Question 15.
Who gave the definition of wantlessness? Write down the definition.
Answer:
Professor J.K. Mehta, a well-known economist from India and Professor of Allahabad University, gave the definition of wantlessness.
According to Professor J.K.Mehta, “Economics is a science which studies human behaviour as a means to attain the end of wantlessness.”
Question 16.
Write two points of criticism of Professor Mehta’s definition of ‘wantlessness’.
Answer:
Following are the two points of criticism of Professor Mehta’s definition :
- Difficult to even think about existence of a wantless person :
In today’s materialistic era, ordinary human beings do not even think of reducing their need for maximum happiness. - The concept of maximum happiness is not correct- Critics consider Professor Mehta’s perception contradictory. On one hand, Mehta talks about reduction in needs and on the other hand is expressing the perception of maximum happiness.
Question 17.
Write the definition of economics according to Prof. Samuelson.
Answer:
According to Professor Samuelson :
“Economics is the study of how men and society choose, with or without the use of money, to employ the scarce productive resources, which have alternative uses, to produce various commodities over time and distribute them for consumption now or in the future among various people and groups in society”.
Question 18.
Give two reasons for economic problem or the problem of choice.
Answer:
Following are the two reasons for economic problem or problem of choice-
- Limited economic resources :
The amount of economic resources available to humans such as capital, land, energy, etc. is limited. Therefore, it is not enough to meet the unlimited wants of humans. - Unlimited Wants :
Human needs are unlimited, if one requirement is fulfilled then the second is born. As the person who does not have a fan, he needs a fan, but whoever has a fan, needs a cooler and who has a cooler, he will be needing an A.C. As such, human wants are unlimited.
Question 19.
State two similarities between the definitions of Marshall and Robbins.
Answer:
- Both economists, Marshall and Robbins have given priority to the humans and secondary position to the resources.
- In Marshall’s theory, the central point is maximum welfare, whereas Robbins has mainly focused on economization. But the tendency of both the economists is one i.e. maximum satisfaction.
Question 20.
According to Professor Mehta, the purpose of economics is to increase real happiness. Explain this statement.
Answer:
Professor Mehta has said that the purpose of economics is not only to increase the satisfaction but increase the real happiness because the desires are limited so it is not possible to satisfy them completely. Thus, real happiness can only be achieved by decreasing the desires. Professor Mehta has called it a state of mental balance.
RBSE Class 11 Economics Chapter 1 Long Answer Type Questions
Question 1.
State the ‘Wealth-centric’ definitions of economics. State its criticism too.
Answer:
Wealth Centred Definition :
Economists like Prof Adam Smith, f.B. Say, Walker and others propounded wealth-centred definitions. Prof. Adam Smith, in his book published in 1776, titled “An Enquiry into the Nature of Wealth of Nations”, defined economics as follows :
“Economics is the science of wealth.”
According to Walker :
“Economics is that body of knowledge which relates to wealth”.
Established economists believe that the ultimate objective of human economic activities is to earn wealth. Due to excessive focus on wealth, many thoughts and misconceptions emerged. It was said that economics believes humans to be excessively attracted towards wealth and currency. But in the beginning of 19th century, some economists stated that wealth is merely a resource in human life, therefore, relating economics with the mere analysis of its origin is inappropriate. Thus, this view was largely criticized.
Criticism :
- More focus on wealth :
In these definitions, more focus was laid upon wealth. Wealth was accepted as a goal and end, while gain of wealth is merely a resource and not an end, by which humans fulfill their wants. - Imagination of human wealth :
According to ancient economists, humans work either by getting motivated to earn wealth or due to self-interests. However, this thought is wrong. In fact, humans not only work by getting motivated to earn wealth, rather, they also work by getting motivatied other human feelings (like compassion, love, and tolerance etc.). - Skewed by scope of economics :
In definitions given by ancient economists, only tangible things have been included in wealth, while services (like doctor, engineers, advocates, teachers, etc.) have not been included under wealth. The scope of economics has become skewed due to this.
Question 2.
What is the development-centric definition of economics? Explain the main virtues of this definition.
Answer:
Prof. Robbins gave a new perspective to economics. Neither he emphasized upon wealth nor or human welfare. Rather, he tried to establish a relationship between human being’s unlimited wants and limited means. He defined economics from a novel perspective.
According to Robbins :
“Economics is a science in which ends, limited resources with multipurpose uses and their relations to human behaviour are studied.”
Explanation of Robbin’s definition :
Robbins gave a new dimension to the definition of economics. Following are the four significant points of this definition
- Human wants are perpetual and unlimited.
- Resources (wealth & time) are limited to satisfy those wants. In such circumstances, human beings have to make a choice from these wants.
- There can be alternative uses of these resources. The resources become more limited due to this, hence human beings have to choose from the alternatives. Economic difficulty of such choices is always present.
- There is difference in the priority of such wants. Some wants are high on the priority list and several others are low on priority. Such difference in priority among wants helps in their selection. A sensible person has to list his wants on the basis of their priority.
It is clear from the above explanation that human behaviour is a matter of choice or decision making among unlimited wants and limited resources. Robbins terms this as an economic problem.
The Complete Educational Website