Cardinal Utility Analysis/Approach:

Definition and Explanation:

Human wants are unlimited and they are of different intensity. The means at the disposal of a man are not only scarce but they have alternative uses. As a result of scarcity of recourse, the consumer cannot satisfy all his wants. He has to choose as to which want is to be satisfied first and which afterward if the recourse permit. The consumer is confronted in making a choice.

For example, a man is thirsty. He goes to the market and satisfy his thirst by purchasing coca cola instead of tea. We are here to examine the economic forces which make him purchase a particular commodity. The answer is simple. The consumer buys a commodity because it gives him satisfaction. In technical term, a consumer purchases a commodity because it has utility for him. We now examine the tools which are used in the analyzes of consumer behavior.

Robbins Definition of Economics:
 

Marshall’s definition of economics remained an article of faith with all economists from 1830 to 1932. However, with the publication of Robbins book 'Nature and Significance of Economic Science' (1932), there developed a fresh controversy in regard to the definition of economics. Lionel Robbins, after criticizing the definitions given by the Classical and Neo-classical economists, gave his own definition of Economics. According to him:

Marshall’s Definition of Economics

Marshall’s Definition of Economics:

The neo-classical school led by Dr. Alfred Marshall gave economics a respectable place among social sciences. He was the first economist who lifted economics from the bad repute it had fallen. Dr. Alfred Marshall (1842 - 1924) in his book, 'Principles of Economics' defined Economics as:

Definition of Economics By Adam Smith

Definition of Economics By Adam Smith:

There is no one definition of Economics which has a general acceptance. The formal roots of the scientific framework of economics can be traced back to classical economists. The pioneers of the science of economics defined economics as the science of wealth.

Adam Smith (1723 -1790), the founder of economics, described it as a body of knowledge which relates to wealth. Accordingly to him if a nation has larger amount of wealth, it can help in achieving its betterment. He defined economics as: