The field of economics uses scientific methodology to unveil truths about its nature. Economists often perform experiments and use scientific tools for crafting analyses. However, much of the attention paid to economics focuses on its non-scientific aspects.Continue Reading
At its core, the field of economics tries to uncover basic universal facts. Like many sciences, economics has a strong foundation in mathematics, and it is developed by testing hypotheses. In many ways, economics can be viewed as a field of applied psychology. Understanding how humans behave in certain situations and respond to changes is essential for the field's development.
Unlike the so-called "hard sciences," however, many economic hypotheses are difficult to test. Economic systems are run by governments, and it is immoral to cause economic harm to individuals and populations. With its strong mathematical foundation and its reliance on human behavior, economics straddles the gap between more basic types of science and so-called "soft sciences" such as anthropology and sociology.
In the media and in politics, however, the scientific aspects of the field are often ignored. Politicians might discuss the morality of different economic policies, and they might make promises based on faulty economic premises. Because economic policies have such a dramatic effect on the lives of voters, politicians spend a considerable amount of time developing a message that influences voters.Learn more about Economics
In the field of economics, the term "unitary elasticity" refers to a situation in which a shift in one factor leads to a proportional or equal shift in another factor, leaving original outcomes in place. This is particularly important with regard to the setting of prices; when unitary elasticity is at work in a market, it is impossible to change revenues by changing the unit price.Full Answer >
The nature and scope of managerial economics includes taking a managerial problem and suggesting a course of action to solve the problem. The problems include anything related to the managerial process of a business, such as account management, production and inventory or sales and marketing.Full Answer >
In economics, demand is a measure of how much buyers want or need a product. For example, consumers may collectively avoid buying a particular product because they don't understand it or don't believe it has value, resulting in low demand.Full Answer >
In basic economics, labor resources, or simply labor, is one of the three major factors of production, the other two being land and input. In the broadest sense, labor can be defined simply as the ability to work or supply workers to a given industry or economic sector.Full Answer >