Economics is closely related to the other social sciences, particularly politics, sociology (because some academics argue that economics is in fact a branch of sociology) and ethics; there are also strong connections with psychology, as economics is often influenced and affected by human behavior patterns. Economic thought dates back to ancient Athens with Plato and Aristotle both describing fledgling economic models in their writings.Know More
Sociology, which is the study of human social behavior, can have a quantifiable effect on the application of economics in many ways. Stock market prices, for example, are often influenced much more by the perceptions of investors and shareholders than by actual hard data. Understanding what drives human behavior can lead to a better prepared economic model, and can also mean markets can be tailored around specific patterns of behavior.
Politics and economics are more visibly connected, thanks to the inseparable link between the science of state and the health of the economy. Interestingly, there is much debate about the level of agreement academic economists have with political economic decisions, due to the often long time scales needed to effect and alter economic models, which is often at odds with the need for quick political fixes.Learn more about Economics
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 >
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 >
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.Full Answer >