studies human behaviour
relationship between ends and scares resources
scarce means have alternate uses
All of the above
Answer is Wrong!
Answer is Right!
The correct answer is D. All of the above.
Lionel Robbins defined economics as “the science which studies human behavior as a relationship between ends and scarce means which have alternative uses.” This definition emphasizes the following three key aspects of economics:
- Scarcity: Resources are limited, and there are always more human wants than can be satisfied with those resources. This means that people must make choices about how to use their resources to get the most satisfaction.
- Choice: Because resources are scarce, people must choose how to use them. They must decide which wants to satisfy and which to forgo.
- Opportunity cost: Every choice involves an opportunity cost, which is the value of the next-best alternative that is forgone. When people make choices, they must weigh the benefits of the chosen option against the costs of the forgone options.
Robbins’ definition of economics is widely accepted by economists today. It is a concise and accurate statement of the subject matter of economics.