Definition of Economic Science

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

In the specialized terminology one speaks of economic sciences, since there are several disciplines typical of this scientific branch. In any case, it is stated that the economy it is a science because it uses the scientific method. It should be noted that the scientific method begins with the observation of reality and based on the data obtained, various hypothesis which are finally contrasted and that allow the elaboration of an explanatory theory.

The characteristics of this matter

In the physical and experimental sciences one aspect of reality is normally studied, such as the atom, the velocity, inertia or Energy. However, in economics it is necessary analyze reality in its complexity. In other words, this discipline scientific has a social dimension and politics.

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

The set of phenomena have some kind of relationship between them. These relationships are what allow establishing laws (such as the law supply and demand). If there is a set of laws, it is already 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 about the weather very roughly). This mechanism is not exactly the same in economics, since specialized economists cannot yet determine which will be the economic reality from a series of data because in every economic context there is a high component of uncertainty.

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

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

Macroeconomics studies general variables, such as inflation, unemployment or the CPI. Instead, microeconomics focuses on the economic behavior of businesses, employees, and consumers.

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