Economics is the study of a way in which a society decides or chooses to use limited resources with alternate uses for the production of goods and services and to ultimately distribute the product among different sections of the society. Simply put, economics is about choosing among different alternatives in the presence of scarcity. It aims to ensure that the resources are used in the best possible manner.
Why Economics is considered as a social science?
The term science stands for a systematic and organised body of knowledge. Economics is also a science as it is a systematic and organised study of the economic behaviour of human beings. But, it is not an exact science like Physics and Chemistry as it deals with the study of human behaviour. Therefore, it is known as social science.
Positive Economics and Normative Economics
Positive economics is the study of the facts of life. It means that it deals with the real life economic problems as they are and how these problems are solved.
However, normative economics deals with finding out solutions to economic problems. Simply put, it answers the question of ‘what ought to be done.’
Economics is further divided into many subjects, like in school we have Microeconomics, Macroeconomics, Statistics for Economics, Indian Economic Development, etc.
Microeconomics is a branch of economics studying the behaviour of an individual economic unit. Adam Smith is known as the father of economics and microeconomics. Microeconomics help in contemplating the attributes of different decision-makers in an economy like individuals, enterprises, and households. In simple terms, microeconomics help in understanding why and how different goods have different values, how individuals make certain decisions, and how they cooperate with each other.
Macroeconomics is a part of economics that focuses on how general economies, markets, or different systems that operate on a large scale behave. Macroeconomics concentrates on phenomena like inflation, price levels, rate of economic growth, national income, gross domestic product (GDP) and changes in unemployment.
Indian Economic Development as a subject is to familiarise students with the basic feature of the Indian Economy and its process of development. It is important to first look at the state of India’s economy prior to the country’s independence and form an idea of the various consideration that shaped India’s post-independence development strategy.
Statistics is defined as the study, collection, analysis, interpretation, and organization of data for different ultimate objectives. Statistics help a user in gathering and analyzing huge numerical data easily and efficiently. Statistics can be easily defined in two senses: Plural Sense and Singular Sense. Statistics for Economics plays a major role in economics. Statistics helps in the study of market structure and understanding the different economic problems. After a better understanding of the economic problems, statistics also help in solving those issues by formulating appropriate economic policies.
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