SCARCITY DEFINITION

·         Lionel Robbins was highly critical of the definition of economics given by Alfred Marshall

·         In his book “Nature and Significance of Economic Science”  published in 1931 he challenged the traditional view of the nature of economic science

·         Robbins has defined Economics thus: “Economics is the science which studies human behaviour as a relationship between ends and scarce means which have alternative uses”

·         An analysis of his definition brings to the fore the following three fundamental propositions which form the basis of the structure of economic science:

1.    Ends: refer to human wants which are unlimited. That is why Economics is also called a Science of Choice

2.    Means are limited: The resources that can be used to satisfy wants or ends are limited. Had they been unlimited there would not have arisen any economic problem. The resources are scarce and therefore they have to be economized. The use of the term Scarce is in the relative sense and not in the Absolute sense.

3.    Resources have Alternative Uses: The resources available for use have alternative uses as the same resources can be used for different uses.

4.    Varying Degree of Urgency: The alternative uses are of varying importance and change with time

The other definitions of scarcity as are given by

·         Tibor de Scitovsky defines it as - Economics is the science concerned with the administration of scarce resources

·         In the words of George Stigler, “Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of allocation is to maximize the attainment of the ends”

·         According to Stonier & Hague - Economics is the fundamentally a study of scarcity and the problem which gives rise.

·         Harvey - Economics is the study of how men allocate their resources to provide for their wants.