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Difficulty: EasyDefinition and Scope of Economics

In his 1932 essay, Lord Lionel Robbins provided a widely accepted definition of economics. Which of the following best describes economics according to his definition?

  1. The study of human behaviour as a relationship between ends and scarce means which have alternative usesAnswer
  2. B
    The study of how financial prices and monetary costs are paid for commodities in a market
  3. C
    The study of how nations increase their material wealth through physical production
  4. D
    The study of how technological progress causes an outward shift of the production possibility curve

Answer

According to Lionel Robbins, economics is the study of human behaviour as a relationship between ends and scarce means which have alternative uses.
Lionel Robbins defined economics as the science which studies human behaviour as a relationship between ends and scarce means which have alternative uses. This definition focuses on the core economic problem: unlimited human wants existing alongside limited resources.

Step-by-Step Solution

1
Identify the fundamental components of Lionel Robbins' definition of economics.
Robbins defined economics around four main elements: human wants (ends) are unlimited, time and resources (means) are limited/scarce, and these scarce means can be put to alternative uses.
This analytical definition shifted the core focus of economics to scarcity and resource allocation.
2
Compare the key components with the provided options.
The choice describing human behaviour as a relationship between ends and scarce means with alternative uses matches Robbins' classic definition word for word.
The remaining options describe monetary costs, Adam Smith's wealth definition, or specific growth dynamics.

Key Concept

Lionel Robbins' Definition of Economics
Estimated Time:45s
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Topics

Definition and Scope of Economics

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