The most generally accepted definition of economics is

Step 1: Analyze the question The question asks for the most generally accepted definition of economics. Each option is a definition from a different school of economic thought, so you need to know who said what.

Step 2: The definitions and their authors

| Option | Definition | Author / School | |---|---|---| | A | Inquiry into the nature and causes of the wealth of nations | Adam Smith (Classical): wealth definition | | B | Science of material welfare | Alfred Marshall (Neo-classical): welfare definition | | C | Science which studies human behavior as a relationship between ends and scarce means which have alternative uses | Lionel Robbins (1932): scarcity definition | | D | Science that treats phenomena from the standpoint of price | Davenport: price definition | | E | Practical science of production and distribution of wealth | J.S. Mill / Classical wealth definition |

Step 3: Why Robbins' definition is the most accepted Robbins' definition is the most widely accepted because it captures the central problem of economics:

• Human wants (ends) are unlimited.
• The means (resources) to satisfy them are scarce.
• Resources have alternative uses, so people must choose.

This focus on scarcity, choice, and opportunity cost applies to every society, rich or poor, and is not limited to wealth or material things. The earlier definitions were criticized for being too narrow. For example, they ignored non-material services such as teaching and nursing.

Step 4: Answer The correct option is C.

Exam tip: Remember the pairing with a quick chain:

• Smith → Wealth
• Marshall → Welfare
• Robbins → Scarcity and choice

Whenever you see "ends," "scarce means," and "alternative uses," think Robbins, the modern definition.