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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.
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