Question

Is economics a science? Why, or why not? As part of your response and explanation, include the definitions of “science” and “economics” as you understand them.

Answer 1

Science is a systematic study of knowledge and fact which develops the correlation-ship between cause and effect.

There are following characteristics of any science subject, such as;

(i) It is based on systematic study of knowledge or facts;

(ii) It develops correlation-ship between cause and effect;

(iii) All the laws are universally accepted

(iv) All the laws are tested and based on experiments;

(v) It can make future predictions;

(vi) It has a scale of measurement.

On the basis of all these characteristics, Prof. Robbins, Prof Jordon, Prof. Robertson etc. claimed economics as one of the subject of science like physics, chemistry etc. According to all these economists, ‘economics’ has also several characteristics similar to other science subjects.

(i) Economics is also a systematic study of knowledge and facts. All the theories and facts related with both micro and macro economics are systematically collected, classified and analyzed.

(ii) Economics deals with the correlation-ship between cause and effect. For example, supply is a positive function of price, i.e., change in price is cause but change in supply is effect.

(iii) All the laws in economics are also universally accepted, like, law of demand, law of supply, law of diminishing marginal utility etc.

(iv) Theories and laws of economics are based on experiments, like, mixed economy to is an experimental outcome between capitalist and socialist economies.

(v) Economics has a scale of measurement. According to Prof. Marshall, ‘money’ is used as the measuring rod in economics. However, according to Prof. A.K. Sen, Human Development Index (HDI) is used to measure economic development of a country.