To What Extent Can Economics Be Considered a Science.

1. “The peculiar character of the problem of a rational economic order is determined precisely by the fact that the knowledge of the circumstances of which we must make use never exists in concentrated or integrated form, but solely as the dispersed bits of incomplete and frequently contradictory knowledge which all the separate individuals possess (H.3)”

We discover scientific knowledge in various natural science fields such as biology or chemistry. A common misconception about the natural sciences is that both the knowledge they reveal to us and the scientific method used in discovering this are purely analytical. This means that these sciences are rigid in facts and do not contain any subjectivity or creativity. However, the scientific method is not a rigid system of pursuing measurable facts. It contains fallacies and biases. In testing hypotheses, performing observations, or reasoning inductively, science is undoubtedly flawed and erroneous. Paradigms, commonly seen as infallible and containing rather insignificant errors, contribute to many of the errors involved in scientific

Kahneman’s article is an analysis of intuitive thinking and how it guides our decision-making. Although primarily aimed at the field of psychology, it is an interdisciplinary article with applications in economic theorising. Kahneman attempts to differentiate between two systems of thought, one of intuition (system 1) and one of reasoning (system 2), and argues that many judgements and choices are made intuitively, rather than with reason (a slower and more deliberate process). Intuitive decision making, which encompasses heuristics, although generally more efficient and rapid, makes the agent potentially subject to errors due to framing effects or violations of dominance. The analysis of the studies and theoretical situations also provides criticism of the commonly held model of the rational agent within economics. The article also further conceptualises Kahneman’s theory, the Prospect Theory (Kahneman & Tversky, 1979), which has descriptive applications of people’s choice in decision-making situations involving risk and known probability of outcomes. These situations are typically unexplained by the more normative rational agent model.

Trefil, J., & Hazen, R. M. (2011). The sciences: An integrated approach. Hoboken, NJ: John Wiley & Sons,

Relating to Sloaka’s essay criticizing the polarized focus on math and sciences, Newfield shows how the privatization of research

“It is as important to examine what we forgo, as well as what we will get if we choose one alternative over another.” In other words, before a change is implemented into an economy, careful consideration of all other alternatives and their possible outcomes must be thoroughly examined. However, unforeseen outcomes often arise due to the imperfectability of humans.

The scientific method is a process of acquiring new knowledge and to find reasoning in a given hypothesis. The scientific method is also explained as the collection and correlation of data through observation, experimentation and formulating and testing a hypothesis. Only some university students are able to learn and practice the scientific method whilst at university. This essay will provide four arguments on why only some students are able to learn and practice the scientific method at University. These arguments include the student’s choice of studying a science degree and practically learning the scientific method. Or the willingness of the student to acquire a new knowledge and find reasoning; we explore this idea through a brief knowledge of the social enlightenment and the resulting change in social behaviour and authority rebellion.   Also we look at the difference in the academic disciplines encountered at university; science, arts, commerce and humanities, each discipline containing a varying approach to learning and acquiring the scientific method in relation to new knowledge. Finally we will explore how those whom do not study a science

What is Science? When it comes to the word ‘science’ most of the people have some kind of knowledge about science or when they think of it there is some kind of image related to it, a theory, scientific words or scientific research (Beyond Conservation, n.d.). Many different sorts of ideas float into an individual’s mind. Every individual has a different perception about science and how he/she perceives it. It illustrates that each person can identify science in some form. It indicates that the ‘science’ plays a vital role in our everyday lives (Lederman & Tobin, 2002). It seems that everyone can identify science but cannot differentiate it correctly from pseudo-science and non-science (Park, 1986). This essay will address the difference between science, non-science and pseudo-science. Then it will discuss possible responses to the question that what should we do when there is a clash between scientific explanation and non-scientific explanation. Then it will present a brief examination about the correct non-scientific explanation.

Economists have often modelled human decision makers as completely rational. According to this model, rational people know their own preferences, gather and accurately process all relevant information, and then make rational choices that advance their own interests. However, Herbert Simon won a Nobel Prize in economics by pointing out that people are rational, but only boundedly so in that they seldom gather all available information, they often do not accurately process the information

In the book, Naked Economics: Undressing the Dismal Science, Charles Wheelan is able to explain the complex science of economics in a way that makes it easy to understand and fun to read. Charles Wheelan connects current economic situations to past ones, like how recessions occur and how they can be ended or prevented. He also talks about how the Fed closely watches interest rates and inflation, and the relationship between inflation and money supply. Even though these topics are very important Charles Wheelan discusses many different interesting topics and that is why this book is an excellent book to help you understand this difficult topic.

The three chapters that we studied this week highlighted many important principles in the study of Economics. One of those concepts is the

Many people think that economics is about money. Well, to some extent this is true. Economics has a lot to do with money: with how much money people are paid; how much they spend: what it costs to buy various items; how much money firms earn; how much money there is in total in the economy. But despite the large number of areas in which our lives are concerned with money, economics is more than just the study of money.

My independent research in the field started with my curious interest in the processes of how decisions made by individuals and governments, what are the main factors encouraged them to choose particular decision over other options and the outcomes of those decisions. Then, I started to read theories of great Economists, such as, Keynes, Freidman , Devenport, Kinnerly and Mason who wrote on decision-making and the ability of individual to interpret the information. Additionally, there were theories by De Bondt , Clark , Tversky and Kehnman who argued that human psychology is interconnected with economics which cannot be ignored. Learning those theories and comparing them with the real life happenings, my enthusiasm to get deeper insights of economics increased. Encouraged by this, I have compiled

As people, we come with earlier knowledge and understandings on subjects and topics of study, “Science” being one of them. We make presumptions, based on either reasonable evidence or that our thoughts and ideas are known as true by others. Through this we have come to understand and define science as its aims, leaving its definition, whether consciously or unconsciously, unchallenged. We have taken advantage of the label that we have set for science, as well as its goals, and failed to look at them further.

Some of the most compelling topics that I learned in this topic only came into focus at the end of the course. Economics is a very large and complex study and reflecting on this subject, piece by piece, requires some patience and ability to put the pieces together. The relationships between simple choices, such as supply and demand, drives all economic and commercial exchange but only through the lens of economic models that attempt to layout this system by combing mathematical principles and psycho-social evaluation. All in all, this was very interesting introduction to some of the complex drivers that propel society.