“Economics is the study of how people and society choose, with or without the use of money, to employ scarce productive resources which could have alternative uses, to produce various commodities over time and distribute them for consumption now and in the future among various persons and groups of society.”
Main features of Samuelson’s Definition:
(i) Efficient Allocation of Resources:
There is a great deal of similarity between the approaches of Samuelson and Robbins. Both have stressed the problem of scarcity of means in relation to unlimited ends.
Samuelson has included dynamism in the definition of Economics by incorporating the time element. The problem of growth has been included in the purview of the definition.
(iii) Problem of Choice:
The greatest feature of Samuelsson definition is that if takes into account the problem of choice in the dynamic framework of economics.
(iv) Improvement in Resource Allocation:
Economics analyse the costs and benefits of improving the pattern of resource allocation. Improvement of resource allocation and better distributive justice are synonymous with economic development.
The modern definition also concerns itself with the distribution for the consumption among various persons and group in a society.