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
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 >
Economics plays a vital role in making modern civilization function, so studying economics helps experts learn how to prevent problems. Studying economics also helps when running or managing a business. Economics is often viewed as a scientific field.Full Answer >
Economics helps individuals and businesses to make informed decisions in different fields, including finance, governance, law, administration, finance among others. Typically, all people in the society are affected by economics in one way or another. It is not only important in education but also in making critical analysis in different situations.Full Answer >
An inverse relationship in economics is a relationship in which an increase in one variable corresponds with a decrease in another variable. The law of demand illustrates this inverse relationship. It states that, with all things being equal, as price falls, demand rises.Full Answer >