Is Economics a Science

Topics: Economics, Social sciences, Scientific method Pages: 4 (1160 words) Published: July 18, 2013
Unit 1
a) Is economics a science? Yes !

The word “Economics” is derived from the Greeks word “Oikonomos” which means to manage the house. So it means the management of a household especially in those matters, which are relating to the income and expenses of the family. After sometime, the term economy was adopted. Economics is regarded as a Social SCIENCE and not a PURE science like Physics or Chemistry because it uses scientific methods to build theories that can help explain the behaviour of individuals, groups and organisations and does not deal directly with experiments with matter. Economics attempts to explain economic behaviour, which arises when scarce resources are used to fulfil unlimited human needs.

1. It is a science because economists can experiment:- In terms of methodology, economists, employ different methods, based primarily on observation and deduction and the construction of abstract models to make experiments with numbers and data. As the social sciences have evolved there are now many different strands of investigation including micro and macro economics, pure and applied economics, and industrial ,social ,environmental and financial economics. 2. Economics is a science because it can make predictions Economists use scientific observation and deduction in their investigations using  index numbers, base year and current year figures and past data. Economists frequently use versions of the demand and supply model to help explain events such as realty prices trends and movements. Economic models usually employ graphical and mathematical analysis to help explain and illustrate such economic processes. 3. It is both a Positive and normative science

As a social science, economics attempts to use the principles and methods of science to explain economic behaviour. This involves making positive statements about

the economic world.
Positive statements are those that can be verified, and are factual, such as: ‘.. House...
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