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 >
Investopedia explains that the origin of economic thought lies with a man named Adam Smith who was heavily influenced by French writers and philosophers. Smith developed the discipline of economics as an alternative to French mercantilism, which was an easily exploited system that benefited the wealthy at the expense of the common classes. Other important economic thinkers include Karl Marx, Milton Friedman and John Maynard Keynes.Full Answer >
Pricing policy refers to the way a company sets the prices of its services and products basing on their value, demand, cost of production and the market competition. Pricing policy is essential for all companies as it provides a guideline for creating profits and areas that bring in losses. Pricing policy goes hand in hand with pricing strategy.Full Answer >
"Descriptive economics" involves gathering and compiling data about the economy, while "economic theory" involves the interpretation of this data as well as the formation of hypotheses. Descriptive economics occurs when economists make observations, notice patterns and record facts.Full Answer >