Limitations of Economics
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Limitations of Economics

Limitations of Economics Resource results from a combination of nature, man, and culture. This combination may be termed as 'the trinity. There is a similar trinity in economic theory—land, labor and capital—as factors of production. The study of resources was for a long time confined to the' study of these factors of productions and was left to economics for understanding human economic life and activities. But in economics these factors are studied only as tools in the hand of entrepreneur of the private enterprise, and so far as they affect price and value.

Limitations of Economics

Resource results from a combination of nature, man, and culture. This combination may be termed as 'the trinity. There is a similar trinity in economic theory—land, labor and capital—as factors of production. The study of resources was for a long time confined to the' study of these factors of productions and was left to economics for understanding human economic life and activities. But in economics these factors are studied only as tools in the hand of entrepreneur of the private enterprise, and so far as they affect price and value. That is to say, economics studies them in a narrower sense for a short-run analysis of the combination (land, labor and capital) in a private enterprise devoted to profit-seeking production. It never studied them as broader bases like, nature man and culture on which the wide-fields of human economic activities rest and develop. And even in the narrower sense these factors (land, labor and capital) are not studied thoroughly; for a deeper understanding of their nature and behavior. Economics studies them rather superficially, leaving the greater part of the task to other branches of natural and social sciences such as, geography, geology, sociology, politics, etc.

With such narrow and incomplete knowledge about production factors (resource factors if so called at all) we can hardly appreciate man's economic life and activities in wider fields. We are least equipped again, to plan for safe-guarding and developing those basic assets, viz., nature, man and culture for social welfare.

Moreover, man's economic life differs from place to place and from time to time. Economics gives us some general principles. These principles can hardly help us to understand the different types of economic activities in different parts of the world and at different ages. For this again the functional aspects of these basic factors have to be studied with to place and time.

Limitation of Traditional Economic Geography

In economic geography we learn the geography of man's economic activities in different parts of the world. Where and why of human economic life is the subject matter of an economic geographer. He approaches the study of man's economic life from the angle of underlying physical realities. He tries to understand economic life and activities by studying the resources from the root upwards. Indeed, he plays a very important part in resource appraisal and in understanding human economic activities in various parts of the world.

 

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