ECONOMICS IS A SCIENCE

Economics is a Science. Discuss

Economics is a Science

Introduction

The word "economy" has ancient Greek origins. It is a combination of two Greek words "economy" and "law", so literally, the "original" sense of the economy should be treated as the economy maintained in accordance with the laws, rules and regulations. First of all, the economy - this economy in the very broadest sense, i.e. the set of all means of subjects, objects, substances of the material and spiritual world, used by people in order to ensure the conditions of life needs. Secondly, the economy means the science, the body of knowledge about agriculture and related activities of people on the use of a variety of resources to the vital needs of people and society, the relations that arise between people in the process of management (Blaug, 2007, p. 347).

Economic science was born much later than the economy itself. For many thousands of people manage economic history, relying on passed down from generation to generation experience. Predecessors have been scientific economics philosophy and sociology, as an adult it is motivated by many years of practice.

Economics is regarded by many economists as a science. This fact is even seen in the definitions of John Stuart Mill, Davenport and Professor Lionel Robins. In the light of this, it will be appropriate to discuss the view that economics is a science (Blaug, 2007, p. 347).

Discussion

Science may be defined as knowledge acquired by observation and testing of fact in an orderly manner. Economics is regarded as a science because it uses certain methods, which methods are also used in the physical sciences such as physics and chemistry, in explaining and observing a phenomenon. Economists observe economic events; attempt to find patterns in them; formulate theories about them, test their theories and finally apply them. Economic Science is studying the sphere of individual and social action, which is intimately connected with the creation and use of the material foundations of prosperity. In addition, economics is concentrated in manufacturing, whereas treatment the exchange of goods is out of sight. The subject of economics as an independent field of knowledge, about 300 years ago when political economy was born - a harbinger of the future of economic theory. Over the past since the period of time, particularly over the last 150 years, views on the subject of economics significantly transformed.

The economic theorist firstly, observes the event about which a theory is to be constructed. The economist does this by collecting the relevant data about a phenomenon. Government agencies, business firms, questionnaires are some sources and means by which data could be obtained. The economist then tries to find consistent relationship in the data they collected. This is done by organizing and analyzing the data. The relationship discovered, enables the formulation of economic theory, which if it is to be useful, explains certain types of economic event. An economic theory is a generalization, based on a variety of facts, about why or how an economic event ...