Which of the following economists is not associated with the wealth related definition of Economics?
- A.Adam Smith
- B.J.B. Say
- C.Walker
- D.Pigou
Show answer
Correct answer: D. Pigou
Explanation
The correct answer is D, Pigou. A.C. Pigou belongs to the welfare group of definitions, not the wealth group. In his book The Economics of Welfare he treated economics as the study of that part of social welfare which can be brought into relation with money, carrying forward the line taken by Alfred Marshall, who called economics a study of people in the ordinary business of life. The wealth definitions came earlier. A is wrong because Adam Smith, in An Inquiry into the Nature and Causes of the Wealth of Nations, called economics the science of wealth and is the father of the wealth definition. B is wrong because J.B. Say described economics as the science which deals with wealth. C is wrong because Francis Walker held that economics is that body of knowledge which relates to wealth. Later Lionel Robbins gave the scarcity definition, treating economics as the study of human behaviour as a relationship between ends and scarce means. Exam tip: wealth – Smith, Say, Walker; welfare – Marshall, Pigou; scarcity – Robbins.