Economics as a Social Science

Abstract

Social science is a field/body of knowledge that deals with and studies the reaction and behavior of society or people to particular issues, topics, circumstances, etcetera.

The social aspect of Economics is the preferences and problems dealt with by society. It is a science as it uses the scientific, interpretative, and analytical methods of analysis and hypothesis to understand human behavior.

Economics requires individuals to have a rational and gain-oriented approach, seeking maximum utility from an exchange utilizing their limited resources.

Economics is a social science owing to its closeness to other Social Sciences like Sociology, Psychology, Mathematics, Statistics, Political Science, and History. Therefore as Social Science, Economics impacts the everyday life of a common person by involving simple decisions like whether to buy a commodity or not on one hand and on the other, it impacts nations and involves complex economic factors like taxation, inflation, governmental policies, unemployment, foreign exchange etcetera, that impacts a country on a macro level. We must also note that the economic factors and policies of a nation also impact the political, geographical, and social aspects of other nations too.