Is economics a social science?

Yes. Economics is a social science. UC Merced defines it as the study of how economic agents behave and interact and how economies function. It examines choices by people and institutions, the markets in which they interact, and economy-wide outcomes including employment, inflation and growth.

Economics is also a scientific, often quantitative discipline. Millersville University says economists formulate theories, collect evidence and test theories against alternatives, using data, logic, mathematical tools and statistics where useful.

Why economics is classified as a social science

According to Tutor2u, economics studies human behaviour, decisions and interactions in the production, distribution and consumption of goods and services. A central concern is scarcity: resources are limited relative to the uses people have for them.

Its subject matter includes individual choices and the social systems in which they occur. Millersville University identifies markets, corporations, legislatures and families as systems economists may analyse through their institutional interactions. Research can address prices and competition, income inequality, employment, trade, education, health, environmental regulation and corporate finance.

How economists investigate these questions

Economists use theoretical and empirical research. UC Merced says its economics research includes empirical and theoretical work as well as economic experiments. The Predoc Consortium includes economics among quantitative social-science fields that use statistical, mathematical or computational techniques to study human behaviour, social structures and societal patterns.

Data can come from surveys, censuses and administrative records. The US Census Bureau describes economic and social research using confidential microdata on businesses and households, along with records from federal and state agencies, across subjects including employment and earnings, income and wealth, productivity, poverty, migration and international trade.

Microeconomics and macroeconomics

The discipline is commonly divided by scale of analysis.

• Microeconomics focuses on individual economic agents and their interactions in markets, such as households, firms and particular markets.
• Macroeconomics focuses on the overall economy, including employment, inflation, economic growth, and the effects of monetary and fiscal policy.

These are complementary areas of study within economics. For a fuller distinction, see our guide to microeconomics and macroeconomics.

Economics, business and policy

Economics overlaps with business and public policy, but it is a distinct academic discipline. Millersville University distinguishes economics from business education, which teaches professional skills for starting and operating companies. Economics examines firms alongside households, institutions and the wider social world.

Economic analysis can inform policy discussions. Millersville University notes that a full policy evaluation also draws on moral, cultural and political perspectives.

Frequently asked questions

What is the difference between microeconomics and macroeconomics?

Microeconomics studies individual economic agents and their interactions in markets. Macroeconomics studies the economy as a whole, including employment, inflation, economic growth and the effects of monetary and fiscal policy.

How do economists use data and statistical methods?

Economists formulate theories, collect evidence and test theories against alternatives. Their research can use data, logic, mathematical and statistical tools; it may also include empirical research and economic experiments.

Is economics the same as business or public policy?

Economics overlaps with business and public policy but has a different academic purpose. Business education focuses on skills for starting and operating companies, while economics studies firms as part of the broader social and economic world. Economic analysis can inform policy, alongside moral, cultural and political perspectives.

Sources

• What does it mean when we say that economics is a social science? — www.tutor2u.net
• Why Economics? | Millersville University — www.millersville.edu
• Social Sciences and Management - UC Merced, SSHA — ssha.ucmerced.edu
• Economic and Social Research — www.census.gov
• Research Areas in Quantitative Social Science — www.predoc.org