According to Robbins, economic activities include both the production of machines and production of ‘philosophy’. Scarcity Explained . Introduction. But it is a fact that even the abundance may cause an economic problem. 1. Robbins Definition of Economics Prof. Lionel Robbins gave his definition of economics in his book” Nature and significance of Economic Science” in the year 1932 .He defined economics as,” Economics is the science that studies human behavior as a relationship between ends and scarce means which have alternative uses.” Lionel Robbins Definition of Economics (Modern School of Thought) “Economics is the Science of Scarcity and Choice” Prof. Lionel Robbins has strongly criticized Alfred Marshall’s definition about economics in 1932 in his book “Nature and Significance of Economic Science.” He said that the concept of material welfare does not explain the subject economics on wide and scientific grounds. According to Robbins’s definition, an economic problem arises due to the scarcity of resources. In his 1932 Essay on the Nature and Significance of Economic Science, British economist Lionel Robbins defined the discipline in terms of scarcity: Robbins’ An Essay on the Nature and Significance of Economic Science (henceforth Essay) defines economics as “the science which studies human behaviour as a relationship between ends and scarce means which have alternative uses” (Robbins, 1969 , p. 16).The book was much appreciated among his circle of friends (e.g., Harold Laski, Jacob Viner, F. A. Hayek, … Robbins’s definition of economics is concerned with the choice between wants and allocation of resources for maximum satisfaction. Scarcity Definition-Lionel Robbins. Elucidate. We can ascertain that the concept of opportunity cost is the gift of scarcity definition. Qno.1 Economics is the science of scarcity and choice. Robbins was not only a critic of the welfare scarcity definition of economics, but he also gave a new definition of economics, which has come to be known as ‘scarcity definition‘.. In fact, maximum satisfaction is a sign of welfare. Unrealistic Assumption. According to Robbins, ‘Economics is the science which studies human behaviour as a relationship between ends and scarce means which have alternative uses.’ Robins theory of economics | Economics as science of scarcity:- In 1932, the British Lionel Robbins provided another definition of economic science, considering it as the branch that analyzes how humans satisfy their unlimited needs with limited resources that have different uses. According to Robbins’ definition scarcity is considered as cause of economic problem. In a barter less economy, Robbins economics will prove a waste because in such an economy, no question arises of scarcity and decision related problems. Putting aside the question of value judgement, Robbins made economics a positive science. Scarcity Definition (1932 • According to Lionel Robbins: “Economics is the science which studies human behavior as a relationship between ends and scarce means which have alternative uses.” • He emphasized on ‘choice under scarcity’. Thus, according to Robbins, economics is the science of scarcity and it studies how the scarce resources are allocated among their different uses. Robbins definition is applicable in only those countries where Barter Exchange System is prevalent. This scarcity definition of economics has widened the scope of the subject. By locating the basic problems of economics — the problems of scarcity and choice — Robbins brought economics nearer to science. The economic problem arises not only from society. The “Great Depression” during the ‘thirties’ of this century is a good example of economic crisis which was not because of scarcity… Because Robbins’ definition explains, how and why economic choices arise.