Short Answer

Economics is called a social science because it studies human behaviour in relation to limited resources and unlimited wants. It explains how people, families, firms, and governments make decisions in society. Since it deals with human actions, it is part of social sciences.

In simple words, economics studies how people live, work, spend, and manage resources in society. It focuses on real-life social and economic problems like poverty, unemployment, and inflation, which affect human life directly.

Detailed Explanation:

Economics as a social science

Meaning of Social Science

A social science is a subject that studies human behaviour in society. It explains how people interact with each other and how they make decisions in different situations. Subjects like sociology, political science, and economics are social sciences.

Economics is included in social sciences because it studies human activities related to money, production, consumption, and distribution. It does not study natural objects like plants or animals, but focuses on people and their choices.

Since human behaviour keeps changing, economics also studies changing situations in society. It helps in understanding how individuals and groups act when they face scarcity of resources.

Study of Human Behaviour

Economics is called a social science mainly because it studies human behaviour in economic activities. It explains how people make choices to satisfy their needs and wants using limited resources.

For example, a person decides how to spend income on food, education, or savings. A business decides what goods to produce and at what price. A government decides how to spend money on public services like health and education.

All these decisions are made by humans in society. Therefore, economics is closely related to human behaviour and social life.

Unlike natural sciences, economics cannot perform laboratory experiments. It studies real-life situations and observes how people behave in different economic conditions.

Economic Activities in Society

Economics studies all major economic activities that take place in society. These activities include production, consumption, exchange, and distribution.

Production involves creating goods and services using resources like land, labour, capital, and entrepreneurship. Consumption involves using these goods and services to satisfy human wants. Exchange involves buying and selling in markets, while distribution explains how income is shared among different groups.

All these activities are performed by people living in society. Therefore, economics directly deals with social life and human interactions.

For example, when prices increase, people change their buying habits. When unemployment rises, families face financial problems. These are social issues studied in economics.

Interaction with Society

Economics is deeply connected with society because it studies how people interact while using resources. It explains how individuals, businesses, and governments work together to solve economic problems.

For example, a government may introduce policies to reduce poverty or control inflation. These decisions affect society as a whole. Similarly, changes in market prices affect consumers and producers in daily life.

Economics also studies inequality in society and suggests ways to improve living standards. It helps in understanding how wealth and income are distributed among people.

Because of this close relationship with society, economics is considered a social science.

Use of Scientific Methods

Economics is also called a science because it uses systematic methods like observation, analysis, and conclusion. It studies economic facts and tries to find general rules or laws.

However, since it deals with human behaviour, it cannot give exact results like natural sciences. Human actions are unpredictable and change with time and place.

For example, the law of demand says that when prices rise, demand falls. But this may not always happen in every situation. This shows that economics is a social science, not an exact science.

It combines scientific methods with social behaviour, which makes it unique.

Real Life Application

Economics is a practical subject that is used in daily life. It helps individuals manage their income and expenses, helps businesses earn profit, and helps governments plan development.

For example, understanding inflation helps people plan their budget. Understanding unemployment helps governments create job opportunities. These are real-life applications of economics in society.

Since it solves social and economic problems, it is clearly a social science.

Conclusion

Economics is called a social science because it studies human behaviour in society related to economic activities. It explains how people make decisions about using limited resources. It is closely connected with social life, uses scientific methods, and helps solve real-world problems. Therefore, economics is an important branch of social science that improves understanding of society and human behaviour.