Science means a systematized and organized study of knowledge. It consists of certain generalizations, principles- and laws which establish relationship between causes and effects of a phenomenon. Economics in this sense is called a science.
Economics as a Science :
Economics is considered as a science due to the following reasons :
1. Economics has its own laws and principles : Economic phenomena are analyzed carefully. Principles influencing these phenomena a are discussed in a clear-cut manner. The various principles and laws of Economics like the principles and laws of Physical Sciences.are useful for drawing conclusions. For example the Law of Demand, the Law of Supply, the Law of Equi-Marginal Utility, the Law of Consumer’s Surplus, the Law of Substitution etc. are some of the important laws in Economics. Of them, the Law of Diminishing marginal .Utility is based on certain assumptions. It holds good only when the consumer is a rational being and when the units of a commodity are homogeneous.
2. Systematic body of knowledge : Economics like other physical sciences, is considered to be a systematic body of knowledge. The various facts relating to the economic phenomena are studied carefully. Generalizations are made with the help of observation, experiments and verification. Mathematical and statistical methods are applied when ever and wherever needed. Therefore,. Economics is considered as a science.
3. Adoption of deductive and inductive methods : Economics like Physical Sciences, adopts deductive and inductive methods for establishing the relationship between cause and effect. Due to this, definite and specific conclusions are drawn regarding the nature of economic phenomena.
4. Research and discoveries : Like other sciences, .Economics allows research and discoveries with regard to the study of economic phenomena. These measures help the investigators in tilt. it analysis of various economic phenomena. For example economists are making research into the problem of inflation, inequalities and backwardness. So continuous research and discoveries are carried on in Economics.
5. Money —a standard of measurement : Every Science has its own standard Of measurement. Similarly Economics has money as its standard for measuring the changes in several economic variables. For example the demand for a commodity depends upon the purchasing power of money. Purchasing power of money is influenced by two factors, namely, the demand for and Supply of money. In Economics the value of every commodity is measured through money.
6. Universal validity : Like other sciences, the statements and principles of Economics have universal validity. They become real only under certain assumptions and conditions. But economic laws are applicable subject to certain assumptions. As Robbins stated “Economics laws are on all fours with the propositions of all other sciences”.
From the above points Economics is considered a complete science. It is in no way less than other sciences.
Criticism of Economics as a Science
The belief that Economics is a science was criticized by many persons like.Bernard Shah and Barbara Wooten. The following points of criticism were put forwarded in this regard.
1. Disagreement among Economists : Several economists disliked and disagreed to call Economics as a science. They expressed different opinions. For instance Barbara Wooten stated “Whenever six economists gathered, there are seven points”. Bernard Shah commented thus If the economists of this world were laid to end, they would not reach a conclusion”.
2. Lacks universal validity : The statement that Economics is a science lacks universal validity and applicability. Economic laws can’t be put into practice as the hypothesis and assumptions of economic laws are not applicable to all places, at all times and in all conditions alike.
3. Prediction – not possible : Complete prediction is not possible in Economics as it studies matters relating to the individuals. But Individuals act and react in different Ways at different times on _an important matter.
4. Weak foundation : Economics is not a science-because it is built on weak and uncertain foundations Economic phenomena is complex and variable, So it is not possible to draw exact conclusions.
5. Controlled experiments – not possible : Science makes it possible for the adoption of controlled experiments. But Economics does not provide scope for controlled experiments. The reason is that economic laws can’t be verified through experiments. Due to the above points of criticism,Economics was no described as a Science. In spite of the above criticism, Economics resembles sciences like Biology, Meteorology. But it is not as pure and complete science as Physics or Chemistry. In this connection Marshall stated thus “Economics aspires a place in the group of science. Though its measurements are seldom exact and never final, yet it is ever working to make them more exact.
Economics as an Art :
Art means the practical application of scientific principles. Art puts these principles into practical use. While some economists expressed the view that Economics is a Science, many economists are of the view that it is an Art. Those who argued that Economics is an Art advanced the following reasons
a) Economics itself cannot solve day-to-day problems of the individuals.
b) Economics should not declare value judgements. If it deals with practical problems, it has to say what is good or what is had.
c) Progress of Economics as a science has several obstructions. This is due to the influence of practical problems.
d) Economics can’t be regarded as a perfect Science.
But modern economists are of the view that Economics has practical utility and conclusions can be reached on important economic problems. Therefore, Economics should be not considered as. a despotic authority whose word is final. Economics has both theoretical and applied aspects. It helps us to solve several complex economic problems which paralyze the development of the economic system.Thus, Economics, if viewed properly, has both the characteristics of Science and Art.
