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.
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
While economics itself is often considered a social science, many of the social sciences, including anthropology, sociology, political science and history, all relate to economics and how the economy plays a role in human behavior throughout different time periods and cultures. Understanding the production and transfer of goods or money within a society is vital to understanding that society as a whole. For this reason, economics is closely linked with all social sciences and the study of human behavior.Full Answer >
The manufacturing of cars, guns and fast food are examples of mass production. Mass production is a method of producing goods in large quantities at a low cost per unit. The machine tool industry gave rise to the idea of mass production. Innovators in Britain and the United States began producing interchangeable parts.Full Answer >
Transfer pricing occurs when two companies under the same umbrella organization trade good and services between each other and establish an acceptable price for the transaction. It is estimated that 60 to 70 percent of international trade involves transfer pricing between two companies from the same corporate group.Full Answer >
Oligopolies are usually seen as being negative to the general public. There are certainly disadvantages of oligopolies, including reduced consumer choice. However, the disadvantages are also matched with some advantages, including price stabilization.Full Answer >