Definition of Economics
The definition "Economics is the study of man's actions in ordinary business of life" is attributed to Alfred Marshall, a prominent economist.
Who is Alfred Marshall?
- Alfred Marshall (1842-1924) was a British economist who played a crucial role in the development of microeconomic theory.
- He is best known for his work "Principles of Economics," published in 1890, which laid the foundations for modern economic thought.
Significance of Marshall's Definition
- Marshall emphasized the importance of human behavior and social interactions in economic activities.
- His perspective shifted the focus from mere wealth accumulation to understanding how individuals and societies allocate resources in daily life.
Key Contributions of Alfred Marshall
- Introduced concepts like elasticity of demand, consumer surplus, and the theory of supply and demand.
- Advocated for the use of diagrams in economic analysis, notably the supply and demand curves.
- His work provided a bridge between classical economics and the emerging neoclassical school.
Comparison with Other Economists
- Adam Smith: Often regarded as the father of economics, he focused on wealth creation and the role of self-interest in economic growth.
- A.C. Pigou: Known for his work on welfare economics and externalities, he built upon Marshall's ideas.
- J.B. Say: Famous for Say's Law, which emphasizes production as the source of demand.
Conclusion
Marshall's definition encapsulates the essence of economics as it relates to human behavior in everyday life, making it a cornerstone of economic thought. His contributions continue to influence economic theory and practice today.

2.marshall