Wealth definition was the first definition to economics.Welfare definition came for economics because of the criticism faced by the wealth definition.

Welfare definition was proposed by,Alfred marshall in his book principles of economics.

He tried to correct the defect of the wealth definition by shifting the emphasis form wealth to welfare.He defined ,

Economics is a study of mankind in the ordinary business of life,it examines that part of individual and social action which is almost closely connected with the attainment and use of material requisite of well being.

Thus the definition gave importance to both study of man and wealth.It emphasises the attainment of material welfare as the ultimate goal of economics.

Here money was made as a rod of measuring welfare.But we know that welfare is not only money.So,this definition was although accepted,severe criticisms were raised against it.Economists said that:

• Definition is based on welfare,but it cannot be measured or compared.
• Non-material means of welfare was not considered.
• All material things willnot promote welfare.Poison,sugar for diabetic patients etc. are good examples for it.

• Written by Jobin.
• In category Commerce.
• 15 years ago.

Hot Hits: 3354

Like it on Facebook, Tweet it or share this article on other bookmarking websites.