Who was Alfred marshal
Dear Student
The first definition of economics is given by Adam Smith in 1776 A.D.
Adam smith separated economics from other social science.
He says economics is only concerned with wealth earning activities and given first priority to wealth and second priority to mankind. Adam Smith assumed mankind is for wealth but wealth cannot be for mankind.
Wealth definition of Adam smith was strongly criticised on several grounds by economist named Alfred Marshall.
Regards
The first definition of economics is given by Adam Smith in 1776 A.D.
Adam smith separated economics from other social science.
He says economics is only concerned with wealth earning activities and given first priority to wealth and second priority to mankind. Adam Smith assumed mankind is for wealth but wealth cannot be for mankind.
Wealth definition of Adam smith was strongly criticised on several grounds by economist named Alfred Marshall.
- According to Alfred Marshall : He explains how a man in ordinary business earn's wealth and utilises to achieve maximum satisfaction.He further added wealth is for betterment of mankind but mankind is not for wealth.He suggested primary importance should be given to mankind and secondary importance to wealth.
- Alfred Marshall has highly focused on material welfare i.e. satisfaction or utility obtained from physical goods or material goods rather than human welfare. The satisfaction derived by the consumer by consuming basic goods like food,cloth, shelter etc. or luxury goods or habitual goods is called material welfare
- According to him economics is a normative science. Marshall said that wealth is utilised for human welfare.
- According to him, economics study those human lives in society, It doesn't studies the isolated person not belonging to society such as beggars, hermits, monks etc.
Regards