explain welfare definition of statistics

Dear student,

According to Marshall's welfare definition: " Economics is a study of mankind in the ordinary business of life, it examines that part of individual and social action which is most intimately connected with attainment and use of material requisites of well being."

It means that the main focus of this definition is on human well being. It is concerned with the economic aspect of human life, i.e. with income earning and income spending activities of mankind. According to Marshall, economics is concerned with that part of human welfare which is related to wealth. As per him material needs, i.e. food, clothing, shelter are very basic needs that must be fulfilled before any other needs. He has limited the scope of economics to those activities only which can be measured in monetary terms, that's why he has excluded political, cultural, social and religious activities from the scope of economics as these activities can not be measured in monetary terms.


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