The Study of Economics
GROUP 3 ECONOMICS
Standard and Higher Level INTRODUCTION The study of economics from an individual, a firm, a business, governmental and international perspectives are being increasingly important today. In the world of continuing globalization and technological developments, decisions made today by an individual or society can have a multiplier effects on other businesses and countries. Therefore, there is a need for an understanding of human experience and behaviour made in the economic environment and their effects on the physical, political, environmental and social sectors. NATURE OF THE SUBJECT Economics is a dynamic social science, forming part of the study of individuals and societies. The study of economics is essentially about the concept of scarcity and the problem of resource allocation. Although economics involves the formulation of theory, it is not a purely theoretical subject: economic theories can be applied to real-world examples. Neither is economics a discrete subject, since economics incorporates elements of history, geography, psychology, sociology, political studies and many other related fields of study. Economics does not exist in a vacuum, because it naturally must consider how economic theory is to be applied in an international context. The scientific approach characterizes the standard methodology of economics. This methodology can be summarized as a progression from problem identification, through hypothesis formulation and testing, arriving finally at a conclusion. Alongside the empirical observations of positive economics, students of the subject are asked to formulate normative questions. Encouraging students to explore such questions forms the central focus of the economics course. INTERNATIONALISM IN THE ECONOMICS COURSE Internationalism can be defined as the ideal or practice of cooperation and understanding among countries. Economics has an important role to play in promoting such international cooperation and mutual
Standard and Higher Level INTRODUCTION The study of economics from an individual, a firm, a business, governmental and international perspectives are being increasingly important today. In the world of continuing globalization and technological developments, decisions made today by an individual or society can have a multiplier effects on other businesses and countries. Therefore, there is a need for an understanding of human experience and behaviour made in the economic environment and their effects on the physical, political, environmental and social sectors. NATURE OF THE SUBJECT Economics is a dynamic social science, forming part of the study of individuals and societies. The study of economics is essentially about the concept of scarcity and the problem of resource allocation. Although economics involves the formulation of theory, it is not a purely theoretical subject: economic theories can be applied to real-world examples. Neither is economics a discrete subject, since economics incorporates elements of history, geography, psychology, sociology, political studies and many other related fields of study. Economics does not exist in a vacuum, because it naturally must consider how economic theory is to be applied in an international context. The scientific approach characterizes the standard methodology of economics. This methodology can be summarized as a progression from problem identification, through hypothesis formulation and testing, arriving finally at a conclusion. Alongside the empirical observations of positive economics, students of the subject are asked to formulate normative questions. Encouraging students to explore such questions forms the central focus of the economics course. INTERNATIONALISM IN THE ECONOMICS COURSE Internationalism can be defined as the ideal or practice of cooperation and understanding among countries. Economics has an important role to play in promoting such international cooperation and mutual