Economics of Kautiliya Shukra and Brihaspati.pmd

The main points of Marhsall's definition are as follows-
1. Economics is the study of individual and social action.
2. Ordinary business is human profession.
3. Closely connected with material requisites of well being.
Robbins' Definition- Economics is the science which studies
human behavior as a relationship between ends and scarce means,
which have alternative uses. (Robbins, 1932: 16)
The main points of Robbins' definition are as follows-
1. Economics is the study of human (individual and social)
behaviour.
2. It is related with scarce means and wants.
3. It concentrates itself to the use of scarce means.
Table 2.1. Comparison of the Definitions
Head Kautilya Shukra Marshall Robbins
Economic Human Part of Ordinary Wants-means
activity profession tradition business relation
Relation Closely Related Not clear Not
with state related mentioned
Focus Material Optimum Material Economizing
prosperity production welfare resources
Economic Mentioned Implicit Not clear Ignored
growth
Comparison of the Definitions
The comparison of oriental and occidental definitions of
economics is presented in the table 2.1. Oriental definitions of
economics are production oriented. Therefore they stress on economic
growth. Definitions of Marshall and Robbins are consumption oriented,
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therefore they are silent about economic growth. All the definitions
are same in the sense that they give emphasis on economic activity in
social life.
Basic Terms of Oriental Economics and its Limitations
Every economic terminology, at present use, has a long
historical background. Factors of production (now known as inputs)
were assigned technical names after a very long time since the origin
of the subject. Capital was accepted as an indispensable factor of
production by Jevons at first. Organization/entrepreneur was regarded
another important factor by Marshall. He also tried to separate these
two factors according to their functions.
Robbins was the first person who used the word scarcity in a
new economic sense. Ragnar Frisch used many terms of Physical
Sciences in Economics with a new perspective. The concept of
equilibrium of demand and supply opened new doors to the use of
equations in Economics. The recent concept of marginal approach
took several years to be developed in terms of derivative (Barla, 1997:
36-38). Now a day derivatives and functions are the common tools of
optimization theories in economics. The concept of depression that
was introduced in 1930 as lack of effective demand by Keynes, was
redefined as lack of liquidity by modern economists in 2007. Therefore
every technical term and concept, which is very common to the student
of economics today, has its long, unique and interesting historical
background.
Terminology of Oriental Economics also has its interesting
and a long historical background. The term Artha3 used in Arthashastra
has 10 meanings in Sanskrit. All the meanings do not matxch with the
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