______ expressed the view the "Economics is neutral between ends".
Options
ARobbins
BMarshall
CPigou
DAdam Smith
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Introduction to Business EconomicsMTP Oct 20Question 701 of 209
All Questions Correct Answer
✅ Option a — Robbins
All Options:
- ARobbins
- BMarshall
- CPigou
- DAdam Smith
Detailed Solution & Explanation
• The statement "Economics is neutral between ends" is a core tenet of the scarcity definition of economics. This view emphasizes that economics is concerned with the allocation of scarce resources to satisfy unlimited wants, regardless of the ethical or moral value of those wants (the "ends").
• Lionel Robbins is famously associated with this definition of economics. In his influential 1932 essay, "An Essay on the Nature and Significance of Economic Science," he defined economics as "the science which studies human behaviour as a relationship between ends and scarce means which have alternative uses." His definition explicitly states that economics does not judge the desirability of different ends; it simply analyzes how resources are used to achieve them. Therefore, option (A) Robbins is the correct answer.
• (B) Alfred Marshall, on the other hand, defined economics as "a study of mankind in the ordinary business of life." His definition focused more on wealth and welfare, and he believed economics had a role in improving human well-being, which implies a less neutral stance on ends.
• (D) Adam Smith, often considered the father of modern economics, focused on wealth creation and the invisible hand. While his work laid foundational principles, his definition of economics did not explicitly emphasize the neutrality between ends in the way Robbins did.
About This Chapter: Introduction to Business Economics
Paper
Paper 4: Business Economics
Weightage
5%
Key Topics
Meaning, Scope, Price Mechanism
This chapter lays the groundwork for understanding Business Economics as a discipline. It covers the meaning, scope, and nature of economics — including key distinctions like Microeconomics vs Macroeconomics, Positive vs Normative economics, and the fundamental economic problem of scarcity. Students learn how businesses use economic principles for decision-making in a competitive marketplace.
View Official ICAI SyllabusExam Strategy Tip
Focus on definitions and distinctions between concepts. Questions often test whether you understand the difference between Micro and Macro, or Positive and Normative statements.
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