Economics as a Science & Social Science

Economics as a Social Science:

Economics as a social science deals with various aspects of human behaviour, and how we use our limited resources to satisfy unlimited wants or desires. Economics, as a social science, explains the activities in relation to the way we choose among alternatives, in order to have total satisfaction from the available limited resources.

The following are other social science subjects: Geography, Psychology, Sociology, Political Science, etc. The difference between economics and other social sciences is that it concentrates on the aspect of human behaviour, by which man tries to satisfy his wants, which are unlimited with his limited resources. 

In other words, Economics as a Social Science studies human activities with respect to production, distribution, and consumption. Goods and services are produced to satisfy human unlimited wants. It is by consumption that wants are satisfied, and consumption cannot exist unless production and distribution take place. 

Economics as a Science:

Economics is a science because it adopts a scientific method, which is based on observation (observing people’s behaviour), assumptions (formation of hypothesis) about people’s behaviour, analyzing data, and gathering of information for tests and validity or reality.

Science is a systemized body of knowledge, that is based on verification, and prediction of laws governing a particular class of phenomena, which involves observation of relevant data. Economics is a science but not a pure science like Biology, Chemistry, etc. Economics is a science because it has formulated theories, observations, predictions, hypothesis, principles, and laws, just as other science subjects, for example, physics.

There is also the theory of the consumer, the law of demand (If the price of a particular goods falls, the demand will increase) which is subject to testing and gathering of information.