According to the Business Insider, economics is like a science because economists use an empirical or scientific method to solve problems. In addition, theories in economics can be tested. The Business Insider adds that economists have access to big data, which allows them to isolate and establish the causal relationships of a scientific inquiry.Know More
The New Yolk Times notes that even if solutions for many problems in macroeconomics are elusive, the challenges economists face are also encountered by other scientists. For instance, problems in conducting experiments and testing variables are also faced by physicists and medical professionals. Economists are developing tools similar to scientific experiments in order to overcome their challenges and provide empirical solutions to specific policy issues.
The Business Insider reveals that when Robert Shiller, Lars Hansen and Eugene Fama received a Nobel Prize award in economic sciences some thinkers started to question if economics is like a science. According to The Guardian, the critics of economic sciences are concerned because most economists focus on policy issues instead of discovering the fundamentals of economics. Furthermore, politics often gets involved in economic studies. However, true economists are not politically polarized and don’t seek attention but instead pursue truth. According to the New Yolk Times, the demands of critics are uninformed, unfair and ignore past successes of researchers in economics and emerging evidence.Learn more about Economics
Adam Smith is often considered the father of economics. Much of what is considered the standard of market theory was written by him over the course of two books, the "Theory of Moral Sentiments" and "An Inquiry into the Nature and Causes of the Wealth of Nations."Full Answer >
Allocation in economics is an analysis of how limited resources, also called factors of production, are distributed among producers, and how scarce goods and services are divided among consumers. Accounting cost, opportunity cost, economic cost and other costs are considered in this analysis.Full Answer >
The two major branches of economics are microeconomics and macroeconomics. Microeconomics deals largely with the decision-making behavior of individual consumers and firms in markets, while macroeconomics focuses largely on the aggregated behavior of all consumers and firms in an economy.Full Answer >
Investopedia defines a firm as a business organization, such as a corporation or a partnership, with different levels of legal protection. However, the Ludwig Von Mises Institute states that a firm in economics plays an important role in markets regardless of its legal definition. Firms represent a division of labor and production costs. Small firms may retain one general manager, whereas larger firms have many levels of management and laborers.Full Answer >