Although the fundamental economic problem of scarcity in relation to needs is undisputed it would not be proper to think that economic resources - physical, human, financial are fixed and cannot be increased by human ingenuity, exploration, exploitation and development. A modern and somewhat modified definition is as follows:
"Economics
is the study of how men and society choose, with or without the use of money,
to employ scarce productive resources which could have alternative uses, to
produce various commodities over time and distribute them for consumption now
and in the future amongst various people and groups of society".
-Paul
A. Samuelson
The above definition is very
comprehensive because it does not restrict to material well-being or money
measure as a limiting factor. But it considers economic growth over time.
Economics
is a Science of choice making-Explain the statement/ Explain the definition of
L. Robbins
Robbins gave a more scientific definition of Economics. His
definition is as follows: