Why is Economics Considered a Social Science? Reasons

What are the reasons Economics is considered a social science

If you are an economics student, you can agree with me that this will be the first topic in the introduction to Economics that will make you to “think hard.” Some people really find it it difficult to clearly understand the reasons that made Economics a social science. By definition, Economics is a social science which studies the process and institutions whereby the insatiable human wants are satisfied within the limits imposed by the availability of resources which have alternative uses. Well, before we go into the reasons, let us first of all understand what a science and a social science means.

Science is a body of systematized knowledge that entails the collection, classification and analysis of data with a view to matching evidence with theory. Social Science is one of the branches of science devoted to the study of the societies and relationships among individuals within these societies.

Reasons Why Economics is a social science

Firstly, Economics is a science because it collects, classifies and analyzes data with a view to validating a theory.

Economics is a social science because it uses scientific methods to study human behavior.

Economics is also a social science because it examines the observable and verifiable behavior of individuals and institutions engaged in the production, exchange and consumption of goods and services.

Scientific Methods that makes Economics a social science

Here, I will be giving you a brief explanation on the various scientific Methods used in Economics. These are;

Collection of Data

Economists collects data used in solving the problem at hand. These data maybe related to economic activities, economic outcomes and economic behavior of individuals. As a result of some irrelevant facts, economist are highly selective in the collection of Data.

Systematic Arrangement of Data

They equally goes ahead to sort this data. This is to enable them determine the data that are relevant to the situation under consideration. Arrangement of data makes it more meaningful and usable.

Analysis of Data

Economics analyses data to make generalizations about how individuals and institutions behave. Economic analysis is the process of examining the existing economic climate, identifying its strength and weaknesses, and discovering the opportunities for improvement.

Use of theories and principles

This is the end of data analysis in Economics.This method helps them in the arrangement, interpretation and generalization of facts. It helps in clarifying the facts by putting them in correct relationship with one another. Some economic theories are supported with facts. One of the things to note about Economics theories and principles needs to be constantly checked. This is because of the changing economic environment and the response of individuals and institutions towards it.

How is Economics different from Natural Sciences?

Economics is different from Natural Sciences because it does not involve the conducting of experiments in laboratories. Human behaviours cannot be subjected to experiment because it is influenced by a series of factors which cannot be observed in a laboratory setting. For instance, Economics is based on the rational behavior of human beings. This means that individuals makes rational decisions to achieve the greatest satisfaction or the maximum fulfillment of their goals. They make different choices based on their preferences.

Natural Sciences makes use of facts or a situation whereby other factors are held constant while Economics deals with real-world data which are subject to change. Natural Sciences deals with things which are subject to rigid patterns of behavior while Economics deals with human beings who can react to events in an inconsistent or unpredictable pattern. Economics principles are less certain or less precise than that of Natural Sciences. Economics makes use of models to make generalizations which means how relevant facts actually relates to one another.

Also Read; What is a sole proprietorship and examples? Advantages and Disadvantages

What is partnership in business? Meaning, Advantages and Disadvantages?