Alfred Marshall was one of the pioneers of modern economics. His approach to Economics as a science is unique and peculiar. However it has met strong criticism as well. It will be interesting to know his definition of economics. Below an attempt has been made to throw light on Marshall’s views on Economics.

Features of Marshall’s Definition of Economics

1. Study of material requirements of well being: This definition indicates that Economics deals with the material aspects of well-being. Thus, it studies the materialistic aspects of economic well-being.
2. Concentrates on the ordinary business of life: It shows that Economics deals with the study of man in the normal business of life. Thus, Economics explores how an individual gets his income and how he uses it.
3. Emphasis on the role of man: This definition emphasizes the role of man in the creation of wealth or income.
4. Economics is a social science: Economics does not study the behaviour of a single person but of people living collectively in a society. People live together and react to each other while working at offices, factories, shops, firms etc. The problems and activities arising out of these activities are studied by Economics.
5. Use of money: This definition regards economics welfare as a component of social welfare which can be measured in terms of money.

Criticism of Marshall’s Theory

1. Narrow concept of the subject: Marshall in his definition of Economics concentrated chiefly on material welfare and ignored non-material welfare and neglected non-material welfare. Resultantly, the use of the word “Material” in his definition of Economics considerably narrows down its scope. This is because human welfare is not affected only by the measure of material goods produced and consumed but also by the amount of non-material goods produced and consumed. For example, the services of lawyers, dancers, teachers, doctors, engineers and professors satisfy wants and are scarce in supply. Therefore, this appears to be a major drawback of this definition.
2. Relationship between Economics and welfare: There are various activities which do not boost human welfare but are looked at as economic activities. These include the manufacturing and sale of alcohol or opium.
3. Welfare is immeasurable: Welfare is a state of mind and cannot be quantitatively measured because of its subjective nature. Because the exact amount of welfare cannot be measured and the satisfaction derived from purchases, performances and activities cannot be calculated in exact figures, only assumptions can be made. Also, it differs from person to person, place to place and age to age. For instance, when two buddies purchase the same good, it is impossible to identify or measure or even assume that how much welfare each is going to gain.
4. Unpragmatic: This definition of welfare is theoretical in nature. It is not practically possible to divide man’s activities into material and non-material activities.