After criticizing definition of economics by Alfred Marshall, Lionel Robbins (22 November 1898 - 15 May 1984) a British economist gave his own definition of economics, “Economics is a Science that studies human behavior as a relationship between limited resources and unlimited wants which have alternative uses”.
Aflred Marshall gave economics a respectable place among other social sciences. In his book “Principles of Economics" published in 1890, has defined economics in these terms, “Economics is a study of mankind in the ordinary business of life. It examines that part of individual and social action which is most closely connected with the attainment and use of material requisites of well being”.
Without consumer no business can exist. Consumer Sovereignty refers power of consumer to decide in a free market, what to produce which make him sovereign over the capitalists and entrepreneurs. When a consumer purchases a commodity, a whole chain of events must previously have occurred.
Economics is the science of choice. It studies the human behavior in matching the limited resources with the unlimited wants. The scarcity of resources for fulfilling unlimited wants, gives births to economic problem. Every economic problem is the problem of choice and valuation. The wants that are unlimited, have to be satisfied by employing, limited resources.
Business economics can be simply viewed as the application of economics for the analysis of business. Business, on the other hand, is an economic activity. There is a need for objectively analyzing structure scope, efficiency and growth of business Economic analysis is done to provide objectivity.
Definition of Economics by Adam smith (1723 – 1790) a Scottish Philosopher and founder of Economics wrote a book “An Inquiry into the Nature and Causes of the Wealth of Nations” was published in 1776. In the book he defined economics as a Science of Wealth. Some other economists like J.B Say, F.A Walker, J.S Mills and other also declared economics as a science of wealth.
According to Loucks definition of economic system is that it consist of those institutions which a given people or nation or group of nations has chosen or accepted as the means through which resources are utilized for the satisfaction of human wants. According to Gruchy, It is an evolving pattern or complex of human relations which is concerned with the disposal of scarce resources