Learn: Economics as a Social Science

Welcome!Welcome to today's lesson! We're going to learn about Economics as a Social Science. This topic helps us understand the foundations of economics and how it fits into the broader study of society.

What is Economics?Economics is the study of how individuals, businesses, and governments make choices about the allocation of scarce resources. These choices are influenced by factors like costs, benefits, and available alternatives. Economics helps us understand how resources are used and distributed in society.

Why is Economics a Social Science?Economics is considered a social science because it studies human behaviour and interactions in the context of scarcity and choice. It uses scientific methods to analyse data, test theories, and predict outcomes. Unlike natural sciences, economics deals with human decisions, which can be influenced by culture, preferences, and emotions.

Key Concepts in EconomicsEconomics uses several important concepts to study human behaviour:Scarcity: Resources are limited, but human wants are unlimited, so choices must be made.Opportunity cost: The value of the next best alternative that is given up when making a choice.Positive vs. normative statements: Positive statements are objective and can be tested, while normative statements are subjective and based on opinions.

Positive vs. Normative StatementsPositive statements are factual and can be tested or proven (e.g., 'Inflation is 5% this year'). Normative statements express opinions or value judgments and cannot be objectively tested (e.g., 'The government should reduce taxes'). Understanding the difference is key to analysing economic arguments.

Review Time!Great work! You've learned about the key concepts behind Economics as a Social Science. Now let's review to test your understanding.

Lesson Completed!Well done! You now understand the key concepts of Economics as a Social Science, including scarcity, opportunity cost, and the distinction between positive and normative statements. Keep practising to strengthen your understanding!