Question
Critically analyze welfare definition of economics.

Answer

Marshall pointed out that wealth is not an end in itself; but it is only a means to an end; end being promotion of human welfare. Thus, according to Marshall, wealth is only a secondary thing; it is man and his ordinary business of life which is the primary object of economic study.
According to Alfred Marshall, Economics is the 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 Part with the use of the material requisites of the well being. Thus, it is one side of the study of wealth and more important side is a part of study of the man.
According to A. C. Pigou “The range of our enquiry becomes restricted to that part of social welfare that can be brought is directly or indirectly into relation with the measuring rod of money."
According to Cannan, “The aim of e political Economy is the explanation of the general causes on which the material welfare of the human being depends."
Critical Evaluation of the Welfare Definition: fly Economics studies not only material B things but also non material things.
  1. Welfare is a subjective thing and varies from person to person.
  2. Goods like liquor, opium and cigarettes etc are harmful to health but are studied in economics as they are scarce in relation to demand for them.

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