What is Economic Science/meaning/concept

The idea of ​​economic science encompasses all parameters, theories and study techniques related to the factors of production of a society. Through a set of tools, economic science intends to describe the behavior of companies, individuals and nations regarding their material resources .

Specialized terminology speaks of economic sciences, as there are several disciplines specific to this scientific branch. Anyway, it is said that economics is a science because it uses the scientific method. It should be noted that the scientific method began with the observation of reality and from the data obtained, several hypotheses were created that were finally contrasted and allowed the development of an explanatory theory.

The characteristics of this discipline

In physical and experimental sciences, an aspect of reality is usually studied, such as the atom, velocity, inertia and energy . However, in economics it is necessary to analyze reality in its complexity. In other words, this scientific discipline has a social and political dimension . Economic Science

Economic studies, like other scientific disciplines, observe the phenomena of reality.

The set of phenomena has some kind of relationship to each other. These relationships are those that allow establishing laws (such as the law of supply and demand). When there is a set of laws, it is possible to speak of an economic theory. In this sense, every theory tries to explain a wide range of phenomena.

Traditional science can predict certain phenomena (for example, meteorology tells us the weather in a very approximate way). This mechanism is not exactly the same in economics, since specialist economists cannot yet determine what the economic reality will be from a series of data, as in any economic context there is a high component of uncertainty. Economic Science

Economic science is divided into two divided areas: microeconomics and macroeconomics

Microeconomics is focused on the study of small economic agents (for example, individuals and families) and how they interact with each other. The set of all individual decisions that make up the market is what makes up the macroeconomy.

Macroeconomics studies general variables such as inflation, unemployment or CPI. On the other hand, microeconomics is focused on the economic behavior of companies, employees and their consumers. Economic Science

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