Question

1. How is economics different from other theoretical fields of social science like psychology and practical fields like business?
2. Why do you think you need to take this course?
3. What are the distinguishing features between macroeconomics and microeconomics?
4. Theoretical fields like economics employ abstract models. Why is better to employ abstract models instead of trying the understand the subject as a whole?
5. Economies are organized based on the modes of resource allocation and resource ownership. Which economic systems perform better when it comes to fairness and efficiency

Answer 1

1. Social science refers to the study of human behaviour and activities. The study of economics is based on the scarcity of resources. All resources are limited not available in quantity but also in practical utility. Economic activity reveals the human adaptation to the real and perceived limitations on available resources.

The rational choice is also a feature that differentiates economics from the rest of the science. Economic theories presume that individuals think and behave rationally when making economic decisions.

The institutions studied by economics is different from other social sciences, although there is a great overlap with regard to the government. Economics studies the impact of businesses,government legislation and treasuries, banks and the stock market . These institutions influence the human ability or willingness to conduct business for the purpose of obtaining wealth.

Economics resembles natural sciences more than other social sciences. The understanding of economic forces and events provided by the study of economic forces and events provided by the study of economics is based on theorems and principles, many of which have been proven sustainable.