1.1.1 - Economics as a social science

Question 1

What is a social science?

Answer 1

A social science is a major category of academic disciplines, concerned with society and the relationships among individuals within a society.

Question 2

What is economics?

Answer 2

The study of production, distribution and consumption of wealth in human society

Question 3

How is economics a social science?

Answer 3

Economics is regarded as a social science because it uses scientific methods to build theories to explain behaviour of individuals, groups and organisations. Economics explains economic behaviour which arises when scarce resources are exchanged.

Question 4

What methodology and models does economics use?

Answer 4

Develop theories and create models to explain phenomena
test theories and models against facts making use of observations
Use empirical data to improve and revise their economic data.
Use models to make predictions.

Question 5

What are the problem with social science in economics?

Answer 5

Economists cannot carry out laboratory. For example if economists examines impact of price on demand they cant keep consumers incomes constant.

Question 6

What is the solution to social science in economics?

Answer 6

TO get around the existence of multiple variables in the economy. Economics make assumption called ceteris paribus. “All other things remain equal”