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.
Social sciences examine how humans interact within a society. The economy is a great indicator of how those within a society can and do interact, and for that reason it is imperative to understand economics if one hopes to engage in the social sciences. For instance, one cannot study the Great Depression in the United States or the Great Leap Forward in China without understanding how it was the economy that drove human behavior in those periods. Similarly, taking a look into a country's economic stability and transfer of goods and services give anthropologists insight into that country's culture.
Human behavior and economics are so closely related that one cannot be studied without the other. Economics itself is a social science, and the study of economics can be related to all other social sciences.Learn More
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 >
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 >
Investopedia defines a firm as a business organization, such as a corporation or a partnership, with different levels of legal protection. However, the Ludwig Von Mises Institute states that a firm in economics plays an important role in markets regardless of its legal definition. Firms represent a division of labor and production costs. Small firms may retain one general manager, whereas larger firms have many levels of management and laborers.Full Answer >