Economics in relation to other social sciences (2022)

Chapter: 11th 12th std standard Indian Economy Economic status Higher secondary school College

Economics in relation to other social sciences - Sociology, Politics, History, Ethics, psychology, science, mathematics and statistics

Economics in relation to other social sciences

Economics is a social science which deals with human wants and their satisfaction. It is related to other social sciences like sociology, politics, history, ethics, jurisprudence and psychology. For example, the economic development of a nation depends not only on economic factors but also on historical, political and sociological factors. Our country did not have much of economic progress during the British rule owing to historical reasons. Again, we had slow but steady economic growth in our country because of political stability. But in many other countries, there was no steady growth because of political instability. If there is one government today and another government tomorrow, there will not be economic development in that country.

We shall discuss, in some detail, economics in its relation to other social sciences.

Economics and Sociology

Sociology is the science of society. Social sciences like politics and economics may be considered as the branches of sociology. Sociology is a general social science. It attempts to discover the facts and laws of society as a whole. Sociology deals with all aspects of society. But economics deals only with the economic aspects of a society. It studies human behaviour in relation to scarce means and unlimited wants. For a student of sociology, social institutions like marriage, religion, political institutions and economic conditions are all important subjects for study. But in economics, we are interested in them only to the extent that they affect the economic life of a society. And we cannot properly understand the economic conditions of a society without considering its sociological aspects. Though economics is a branch of sociology, we must look at it as a separate and distinct branch.

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Economics and Politics

Both economics and politics are social sciences and there is a close connection between them. Politics is the science of the State or political society. It studies about man in his relation to the State.

The production and distribution of wealth are influenced to a very great extent by the government. We have economic planning in our country. And the main aim of planning is to increase the national income by increasing production and by a proper distribution of income.

The Planning Commission, which is an agency of the government, plays a vital role in it. Some of the important questions like nationalization, privatization and prohibition are all economic as well as political questions. Elections are fought often in many countries on economic issues. Unemployment, labour disputes are all economic issues. But government has to tackle them. The relationship between economics and politics is so great that the early economists described economics as political economy.

Sometimes, political ideas and institutions are influenced by economic conditions. For example, socialism was born of economic inequalities and exploitation in England during the industrial revolution. Karl Marx is considered as the Father of (scientific) socialism.

Economics and History

Economics and history are closely related. History is a record of the past events. In history, we survey economic, political and social conditions of the people in the past. To a student of history, love affairs, marriages and even murders of kings are important subjects of study. For example, the murder of Julius Caesar is important for a student of Roman history. In our country, the religious policy of Mughal emperors is important for a student of history. But we are interested in history only to the extent that it will help us in understanding economic problems of the past.

As students of economics, we are interested in things like taxation and other sources of revenue and standard of living in the past.

In economics, we make use of historical data to formulate economic laws. We make use of history in economics to study the material conditions of people in the past. There is a separate branch of economics known as 'Economic History'.

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We may say economics is the fruit of history and history in the root of economics:

'Economics without history has no root; History without economics has no fruit'.

Economics and Ethics

Ethics is a social science. It deals with moral questions. It discusses the rules that govern right conduct and morality. It deals with questions of right and wrong. It aims at promoting good life.

There is connection between economics and ethics. While economics, according to Marshall, aims at promoting material welfare, ethics aims at promoting moral welfare. When we discuss economic problems, often we consider ethical issues. The government introduced prohibition in many states for ethical reasons, though there was heavy loss of revenue to it.

But Lionel Robbins strongly believes that an economist as an economist should not consider ethical aspects of economic problems. But many economists do not agree with him. They believe that economics cannot be dissociated from ethics. Even Marshall considered economics as a handmaid of ethics. He looked at economics as a study of means to better the conditions of human life.

Economics and Jurisprudence

Jurisprudence is the science of law. The economic progress of a nation depends to a great extent on its legal system. Good laws promote economic progress and bad laws act as an impediment to growth. For example, in the past when we welcomed foreigners to invest in our country, they used to say our taxation was complex and not good. Of course, now things have improved. So we must have simple and clear laws in the fields of taxation and labour legislation to promote economic progress.

Economics and psychology

Psychology is the science of mind. It deals with all kinds of human behaviour. For example, we have child psychology, mob psychology, industrial psychology and criminal psychology. But economics studies one aspect of human behaviour. It studies human behaviour with reference to unlimited wants and limited means. Of late, psychology has become important in analyzing economic problems. To deal with labour problems, we must understand industrial psychology. And a good businessman must understand the psychology of buyers whenever he wants to change the price of his good. Many important laws of economics are based on psychology. For example, we have the law of diminishing marginal utility. It tells that the more and more of a thing you have, the less and less you want it.

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Economics, mathematics and statistics

Among other sciences, economics is related to mathematics and statistics. Statistics is the science of averages. It is the science of counting. Many tables and diagrams used in economics are based on statistical analysis. Mathematical methods are largely used in modern economics.

Now we have a new science calledeconometrics. It makes use of statistics and mathematics in economics. The econometric society was founded in 1930, and the first Nobel prize in economics was awarded to Jan Tinberen and Ragnar Frisch for their contribution to econometrics.

Static and dynamic concepts

Time element is very useful in studying the working of an economy. There are two main lines of approach. They are 1. static analysis and 2. dynamic analysis. In the case of static analysis, we examine a problem at any given moment of time. Even in static analysis, sometimes we consider a short period rather than a single point. We assume that some changes take place during the short period. The method of approach where we take note of changes in the short period is known as comparative statics. For example, incomparative statics, we compare the state of economy at one moment to the state of the economy at another moment. Marshall's analysis of supply and demand is a good example of comparative statics.

In dynamic analysis, we examine the path or process by which the economy moves from one state of equilibrium to another. Time element is an important factor is dynamic analysis. Change is the key word in dynamic analysis. For example, investment during a period may depend upon the rate of interest in the previous period. The study of the trade cycle may be given as a good example of dynamic analysis.

Stocks and flows

Stocks and flows are basic concepts in economics. Stocks can be measured at a given point of time. A flow is a quantity that can be measured only in terms of a specified period of time. In other words, it has a time dimension. For example, wealth is a stock and income is a flow.

Micro economics and macro economics

Economic theory can be broadly divided intomicro economicsandmacroeconomics. The termmicromeans small andmacromeans large.

In microeconomics, we deal with problems such as the output of a single firm or industry, price of a single commodity and spending on goods by a single household.

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Macroeconomics studies the economic system as a whole. In it, we get a complete picture of the working of the economy. It is a study of the relations between broad economic aggregates such as total employment, saving and investment. We may also say that macro economics is the theory of income, employment, prices and money. That is why macroeconomics is sometimes studied under the title 'Income and Employment Analysis'.

Economics as a science

We no longer ask the question whether economics is a science or an art. Science is a systematized body of knowledge. Just as physics and chemistry are sciences, economics is also a science. We observe facts, conduct experiments and make generalizations in physics and chemistry after testing the results. The same scientific methods are followed in economics also. Economics, like all other sciences, studies the relationship between cause and effect.

Sciences may be broadly divided into physical sciences and social sciences. Physics and chemistry are examples of physical sciences. Economics is a social science. It studies about a particular aspect of human behaviour. And human behaviour is full of complexity. It is not easy to study it. So economic science is not as precise and exact as the physical sciences.

But economics has a greater right to be considered as a science than other social sciences like politics or history because in economics we make use of money as a measuring rod of utility. It is true that it is only a rough measure but still it enables us to give concrete shape to the laws of economics. Sometimes, what we say in economics may not come true in real life. But this is the case with many other sciences. For example, we joke about weather forecasts. The weather report in the newspaper may say that there will be heavy rainfall on a particular day. But there might not be any rain at all on that particular day. On account of that, we cannot say that meteorology (the science of weather) is not a science. Similarly, if some economic laws do not come true, we cannot say that economics is not a science.

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11th 12th std standard Indian Economy Economic status Higher secondary school College : Economics in relation to other social sciences |

FAQs

What is the relationship of economics to other social sciences? ›

Economics is classified as a social science. This view makes economics an academic relative of political science, sociology, psychology and anthropology. All of these disciplines study the behaviour of human beings individually and in groups. They study different subsets of the actions and' interactions o human beings.

What is the role of economics in the society as a social science? ›

Considered a social science, economics uses scientific methods to understand how scarce resources are exchanged within society. Economists study theories and techniques useful for developing policies in government as they have a deep understanding of how to create efficiency in today's world.

What is economics according to social science? ›

Economics is the study of scarcity and its implications for the use of resources, production of goods and services, growth of production and welfare over time, and a great variety of other complex issues of vital concern to society.

How economics is different from other social sciences? ›

Answer and Explanation: Economics is different from other social sciences in that it is highly dependent on a knowledge of advanced mathemaics. In this way, it is much more similar to physics and computer science than to other social sciences like sociology and psychology.

What is the relationship between economics and other natural science subjects? ›

Natural science is a subject which deals with the natural environment of earth. Economics is a social science which details about the economy and its effect and impact on the society. The market place where trade and commerce takes place in the society is never a preexistining condition of nature.

What separates economics from other social sciences? ›

Economics and Sociology

It attempts to discover the facts and laws of society as a whole. Sociology deals with all aspects of society. But economics deals only with the economic aspects of a society. It studies human behaviour in relation to scarce means and unlimited wants.

Why is economics considered as the queen of all social sciences? ›

Economics is the queen of social science. It is the study of house society uses its limited. It is concerned with production distribution and consumption of goods and services. It examines how various factors affect the society the use of goods and services, the involvement of individuals, businessmen, and government.

Why economic is important in our daily life? ›

Economics provides the insights and analytical framework required to understand the way our world operates, from the choices we make in our everyday lives to how businesses or governments achieve their desired objectives. Everyday, people make choices that affect their lives, in big or small ways.

Who said economics is a social science? ›

Scitovsky said "Economics is a social science concerned with the administration of scarce resources". Just like Robbins, Scitovsky also believed that economics is a science which deals with the study of human behaviour as a relationship between ends and scarce means which have alternative uses.

Which is true about economics as a social science answer? ›

Economics is regarded as a social science because it uses scientific methods to build theories that can help explain the behaviour of individuals, groups and organisations. Economics attempts to explain economic behaviour, which arises when scarce resources are exchanged.

Is economic a science or social science? ›

Is Economics a Social Science? Economics is a social science focused on the economy and economic activities. Students majoring in economics study economic systems and how individuals and organizations produce and exchange goods.

What are the reasons why economics is a science? ›

Economics is a science because it studies the flow of information in a society. There is no larger a scientific concept than information. To study information is science, and there is no greater reason to claim to be a science than to study the flow of information in a society.

What are the differences and similarities between economic and other science subject? ›

Although Economics is a science, it is different from pure sciences like Chemistry, Physics, Biology etc, because; Experiments in Economics are not conducted in a laboratory but in a society. Predictions in Economics may not always come true because they are based on human behavior, which is very unpredictable.

What makes economics different from other fields of study? ›

Individuals Maximize in Pursuing Self-Interest

Perhaps more than anything else, it is the economist's answer to this question that distinguishes economics from other fields. Economists assume that individuals make choices that they expect will create the maximum value of some objective, given the constraints they face.

How economics is very close to natural sciences? ›

Economics is similar to natural sciences in that they both study the way the world works and have certain "laws", In economics for example, there is the law of demand but as we know a giffen good can exist.

What subjects does economics relate to? ›

Similar subjects to Economics
  • Accounting & Finance.
  • Mathematics.
  • Politics.
  • Social Policy.
  • Sociology.
  • Statistics.

What is the relationship of business economics subject with other subject? ›

Managerial economics is closely related to accounting. It is recording the financial operation of a business firm. A business is started with the main aim of earning profit. Capital is invested / employed for purchasing properties such as building, furniture, etc and for meeting the current expenses of the business.

What sciences are related to economics? ›

Both macroeconomics and microeconomics are considered social sciences. Social science helps to explain how a society functions and is an umbrella term that incorporates several fields of study, including economics.

What are the differences and similarities between economic and other science subject? ›

Although Economics is a science, it is different from pure sciences like Chemistry, Physics, Biology etc, because; Experiments in Economics are not conducted in a laboratory but in a society. Predictions in Economics may not always come true because they are based on human behavior, which is very unpredictable.

What are the relationship between psychology and other social science? ›

Psychology is primarily concerned with the experience and behaviour of an individual. Sociology, on the other hand, is concerned with the role that an individual plays in society. Social psychology deals with the collective behaviour.

Why is economics called the queen of social science? ›

Economics is the queen of social science. It is the study of house society uses its limited. It is concerned with production distribution and consumption of goods and services. It examines how various factors affect the society the use of goods and services, the involvement of individuals, businessmen, and government.

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