Introduction to Economics

ECONOMICS MADE EASY FOR STUDENTS

INTRODUCTION TO ECONOMICS

The simplest meaning of the word economics is:

·         The branch of knowledge concerned with the production, consumption, and transfer of wealth

·         The condition of a region or group as regards material prosperity

·         A social science concerned chiefly with description and analysis of the production, distribution, and consumption of goods and services

The last meaning says that it is a social science which brings us to the point that Economics is a branch of Science albeit Social Science.

Science is defined as the intellectual and practical activity encompassing the systematic study of the structure and behaviour of the physical and natural world through observation and experiment.

The branches of science (also referred to as "sciences", "scientific fields", or "scientific disciplines") are commonly divided into three major groups:

• Natural sciences: the study of natural phenomena (including cosmological, geological, chemical, and biological factors of the universe) Eg Physics, Chemistry, Biology, Earth Sciences, Oceanography, Astronomy etc

• Formal sciences: the study of mathematics and logic, which use an a priori, (as opposed to factual, methodology) eg Engineering and its branches like Electrical, Computer , Information Technology etc

• Social sciences: the study of human behavior and society eg Sociology, Politics, Economics, Anthropology, Demographics, Human Geography, Archaeology etc

Thus Economics as a Social Science is the study of social behaviour guiding in the allocation of scarce resources to meet the unlimited needs and desires of the individual members of a given society.

Social science tells us about the world beyond our immediate experience, and can help explain how our own society works - from the causes of unemployment or what helps economic growth, to how and why people vote, or what makes people happy. It provides vital information for governments and policymakers, local authorities, non-governmental organisations and others.