1 . What is Economics ? Explain economics has a science .

→ ① Adam Smith, the classical economist defines economics as science of

wealth in his book , ‘An Enquiry into the Nature and Causes of the Wealth of
Nations`.

② He says thus : ‘’ Political Economy, considered as a branch of science of

statesman or legislator, proposes two distinct objects, first, to provide a plentiful
revenue or subsistence for the people, or more properly enable them to provide
such a revenue or subsistence for themselves, and secondly, to supply the state or
commonwealth with the revenue sufficient for the public services. It proposes to
enrich both the people and sovereign.’’

③Lord Robbins, Walras, Cournot, Antoine Augustin and senior, Nassau William
considered economics as a science. A science is a systematic and comprehensive
study of facts which explain the causes and effect relationship.

④A science must have the following features :

1) A science is a systematised study of a subject.

2) Science establishes the relationship between cause and effect of a fact.
3) Laws of science are universal.

⑤prof . Robbins says, ‘’The propositions of economics are on all fours with the
propositions of all other sciences ‘’. Robertson says that the last three letters of
the word ‘economics’, i.e., ‘-ics’ present a clear proof that it is a science like
physics and dynamics which have ‘-ics` at the end as economics.

Arguments in favour of economics as a science :

1. Systematised study – In economics, there is a systematised collection,

classification and analysis is systematically divided into consumption,
production, exchange and distribution.
2. Consisting of laws Laws of economics are similar to the laws of other
sciences. In economics laws, we establish cause and effect relationship of
economic activities. For example, the ‘law of demand’ shows the relationship
between a change in price and change in demand .
3. Experiments. – Economics carry several experiments with the laws of
economics. The experiments of economics laws are not made in laboratories
but in the real world and with the men in society.
4. Measuring rod of money – The economic facts are measured with the
measuring rod of money. Economics has the quality of quantitative
measurement of events.
5. Universal – All the economic laws are universally true. The laws of economics
are equally applicable to capitalist, socialist, and mixed economy.

Arguments in favor of ‘economics is not a science`:

Some ecomists like marshall do not regard economics as a pure science. The
main reasons for this are as under:
1. The laws of economics are not universal – the applicability of economic
laws is limited by the differences in physical, social and cultural factors
between different countries. The laws of economics are based on the
habits and tastes of the people. These laws differ for different countries.
Therefore, the laws of economics are not so universal.
2. The laws of economics are not so exact – the laws of economics are not so
exact as they are conditional and with the phrase, ‘ other things remaining
the same`. But the laws of pure sciences are exactly applicable under
similar conditions.
3. No possibility of laboratory experiments – In economics, experimentation
is not possible as the object of its study is man. The conditions around the
man are not fully controllable. The data available to economists from the
real world is not controllable. Hence, economics is not a pure science.
4. Conflicting views – Mrs. Wooten has remarked, ‘’Wherever six economists
are gathered there are seven opinions.’’ The lack of unanimity of opinion
among economists proves that it it is not a science of exactness.
5. Difficulties in making predictions – the difficulty in making correct
predictions in economics Is due to its inexact laws. Therefore, economics
cannot be considered as a pure science.
There is the difference of opinion among economists regarding economics
as a pure science or not. But it can be considered as a social science.