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.
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
In economics, demand is the quantity of goods or services that consumers are able and willing to buy at a given price at a particular time. The law of demand provides that, if all other market factors remain constant, the demand for goods and services increases as their price decreases.Full Answer >
Economics and economic education are important for providing people with valuable insight into how foreign and domestic markets operate, which allows them to make reasoned and rational choices for short-term and long-term financial benefits. Studying economics also allows people to learn how to manage and most effectively use scare and finite resources such as time and money. Studying economics equips people with varying levels of financial literacy, which allows them to effectively manage their own finances and even advise others in financial management and planning, too.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 >
"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 >