"The scope of economics is very large"--Is it true? Describe.

Subject Economics
NU Year Set: 1.(b) Marks: 4 Year: 2012

Economists differ in their views regarding the scope of economics. The scope of economics’ is a broad subject and encompasses not only its subject matter but also various other things, such as its scientific nature, its ability to pass value judgments, and to suggest solutions to practical problems.

By making economics a human science, Robbins has unnecessarily wid­ened the scope of the subject. Thus, in accordance with the view of Robbins, economics would also study the problem faced by Robinson Crusoe, who lives in an isolated island with no contact with the rest of the world.

He has to face the problem of choice between work and leisure. He has to spend some time for his survival — for collecting fruits and roots. He utilises the rest of his time in sleeping or enjoying leisure. Thus, he has also to face the problem of distributing his time between various ends. Thus, Robinson Crusoe has also to face the problem of choice and would surely come within the purview of Robbins’ definition.

However, most modern economists, like R. G. Lipsey, Paul Samuelson Milton Friedman, etc., held the view that, economics is not a human but a social science. Thus, economics should not study the problem of choice faced by a single individual like Robinson Crusoe.

Advantages of Economies of Scope

There is some discrepancy between economists when it comes to the importance of economies of scale because some believe that the theory can only apply to specific industries. For those that apply it, there are some advantages, including: 

  • A flexible mix of products and product design
  • Quick responses to market demand, production design, and output rates
  • Less waste and lower training which lead to a reduction in costs
  • A reduction in risk — a company that diversifies its product line in many different markets can reduce its risk



  

It’s true the scope of economics is very large.

Economists differ in their views regarding the scope of economics. The scope of economics’ is a broad subject and encompasses not only its subject matter but also various other things, such as its scientific nature, its ability to pass value judgments, and to suggest solutions to practical problems.

By making economics a human science, Robbins has unnecessarily wid­ened the scope of the subject. Thus, in accordance with the view of Robbins, economics would also study the problem faced by Robinson Crusoe, who lives in an isolated island with no contact with the rest of the world.

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