Alfred Marshall provides a still widely-cited definition in his textbook Principles of Economics (1890) that extends analysis beyond wealth and from the societal to the macroeconomic level:
"Economics
is a study of man's action in the ordinary business of life it inquires how he
gets his income and how he uses it. It examines that part of individual and
social actions which is mostly closely connected with the attainment and with
the use of material requisites of wellbeing. Thus economics is on one side a
study of wealth and on the other and important side a part of the study of man
".
From the
definition of economics by Alfred Marshall, we see that he lays emphasizes on
the below points.
1.
Study of an ordinary man: According to Alfred Marshall, economics is that
study of an ordinary man who lives in society. It is not concerned with the
lives of only rich persons or who is cut away from the society. Its subject
matter is a particular aspect of human behaviour i.e. earning and spending of
incomes for the normal material needs of human beings.
2.
Economics is not a useless study of wealth: Economics does
not regard wealth as the be-all and end-all of economics activities wealth is
not of primary importance. It is earned only for promoting human welfare
economics is studied to analyze the causes of material prosperity of
individuals and nations.
3.
Economics is a social science: It does not study the behavior of isolated individuals but the actions of persons living in society. When
people live together they interact and cooperate to work at firms, factories,
shop and offices to produce and exchange goods or services. The problems about
these activities are studied in economics.
4.
Study of material welfare: According to Alfred Marshall, economics
studies only material requisites of wellbeing or causes of material welfare. It
is cleared from this definition that it is materialistic aspect and ignores
non-material aspects. Alfred Marshall stressed that the man’s behavior and
activities to produce and consume maximum number of goods and services are the
main object of study wealth is not an end or final aim, but only a means to
achieve a higher objective of welfare.