What is Economics?

Running head : What is economics

THE DEFINITION AND SCOPE OF ECONOMICS

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Abstract

Economics is a very broad area of study that affects all areas of the society , from individuals in household and to a large extent the entire globe . This paper will attempt to define what economics is , the scope in which it applies , whether it is a science or an art , its major areas of study and the relevance of the study in modern times

The true definition of the term

economics has varied over time , and this has been as a result of the dynamic change of scholar views over time . As common with many other studies , economics also does not have a standard definition but different scholars do give a similar definition Schenk (1997 ) states that Economics is the social science that examines how people choose to use limited or scarce resources in attempting to satisfy their unlimited wants (P 1 . It can be established from the above definition that economics is both a science and an art . It is a science in that it follows principles and theories that can be proved through scientific methods . It is also an art in that human behavior , which cannot be measured objectively , is at play . There are also basic tenets that are usually associated with the study of economics and the most profound is the concept of scarcity which later tags along other laws such as the demand and supply laws . Scarcity is an...