Why is economics referred to as a social science?

Economics is referred to as a social science because it studies human behaviour and its impact on wealth and resources.

Economics is a branch of social science that primarily deals with the production, distribution, and consumption of goods and services. It is concerned with how individuals, institutions, and societies choose to use the scarce resources that nature and previous generations have provided. The key aspect that makes economics a social science is its focus on human behaviour and its implications. It analyses how individuals make decisions about how much they work, what they buy, how much they save, and how they invest their resources.

Economics also studies how people interact with one another and how markets function. It examines how goods and services are exchanged and how their prices are determined. Furthermore, it investigates the causes of economic downturns and upturns, and researches how to improve economic stability and welfare. All these aspects involve studying human behaviour and social structures, which is why economics is considered a social science.

Moreover, economics often employs scientific methods such as observation, hypothesis development, prediction and testing to understand and explain economic phenomena. However, unlike natural sciences, it cannot conduct controlled experiments to test its theories. Instead, economists rely on historical data, statistical analysis, and mathematical models to test their hypotheses. This combination of scientific methods and focus on social behaviour further underscores economics as a social science.

In addition, economics intersects with other social sciences like sociology, psychology, and political science. For instance, behavioural economics combines economics and psychology to explore how cognitive biases influence decision-making. Political economy analyses how political institutions and decisions affect economic outcomes. These interdisciplinary approaches highlight the social aspect of economics.

In conclusion, economics is referred to as a social science because it is not just about numbers and graphs. It is about people, their choices, their behaviour, and how these elements interact to shape economies. It is a field deeply embedded in the social context, making it a vital part of the social sciences.