Comparison between Adam Smith’s and Alfred Marshall’s Definition. |
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| Ans : Adam Smith’s and Alfred Marshall’s definition have their points of similarly and dissimilarity, which are as follows:
Similarities
i) Both definitions stress that economics is concerned with the welfare of mankind.
ii) Both definition stress that material welfare is the subject matter of study of economics.
Difference/Dissimilarities
i) Adam Smith measures materials welfare in terms of wealth where as Alfred Marshall measures materials welfare in terms of money. These two concepts are related but are exactly same.
ii) Adam Smith’s definition is based on economic man where as Alfred Marshall’s definition is based on the concepts of ordinary human being.
iii) Adam Smith gives primary importance on wealth where as Alfred Marshall gives primary importance to mankind and his welfare.
iv) In view of Adam Smith, wages earned by labour is a single source of wealth of a nation where as in view of Alfred Marshall, labour and other resources are the sources of wealth of a nation.
v) Adam Smith considered only issues connected with the creation of wealth where as Marshall was concerned with the consumption of wealth and determination of pattern of consumption in a society.
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