Saturday, March 26, 2011

Economics as a Science

The word science comes from the Latin word 'scientia'. But the scientists try to give the definition of science in two ways.

Science is a body of principles which are applicable everywhere in all periods of times, and on the basis of which predictions can be made. If this is the definition of science, then Economics is not a science.

In Economics there are principles of laws, such as the Law of Demand, Law of Supply, Law of Diminishing Utility, Law of Diminishing Returns etc. But the laws of Economics are not applicable everywhere. Moreover, on the basis of these laws no predictions can be made.

Science can also be defined as a systematic knowledge based on either observation or experiment or study and lays down certain principles about the subject, which is observed, experimented or studied. If this be the definition of science, then Economics is a science, because this knowledge is a systematic knowledge. It is based on observation and study. It lays down certain principles or laws.

Science can be classified into two groups:

1. Positive Science: The science, which gives the answer to the question what it is, is known as positive science.

2. Normative science: The science, which gives the answer to the question what is should be, is known as normative science.

Science can be classified into two other groups:

1. Natural science: The science, which deals with nature and natural phenomena, is known as natural science.

2. Social science: The science, which deals with society and the different elements of the society, is known as social science.

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