Economics studies the decisions people make in their daily lives. This study of the choices individuals make brings to mind visions of charts, statistics and equations. These are aspects of sciences which rely on mathematical analysis to prove theories and hypotheses. It leads to the conclusion that economics is, indeed, a science. Economists use scientific methods to derive their conclusions. Like scientific researches, economists devise theories to conduct researches. They then collect and analyze data to verify or refute claims in the presumptions. They use observations and theories to conclude on their postulates like other sciences. The only difference between economics and other disciplines traditionally regarded as sciences is its limited ability to run experiments. As such, economists do not have established, well funded research centers to prove or refute postulates like traditional scientific professionals.
Like science, economists labor to find solutions that make lives of people more comfortable. Economics appreciate the fact that resources are scarce. Moreover, needs and desires are insatiable. It, therefore, does research on all forms of available resources and balances against needs. It considers tradeoffs also referred to as opportunity costs one has to forego in making a decision to purchase one item and not the other for reasons of scarcity of resources. It dissects individual rationality in pursuing self-interests and responding to incentives. Economists then analyze the opportunity cost and consider secondary benefits of each decision. In the same line, scientific researches follow balances naturally available resources against human needs. Researchers then come up with innovative ways to make life comfortable in the face of diminishing natural resources. A perfect example is the researching and introduction of Genetically Modified Foods. GMO has enhanced food production in the face of dwindling agricultural productivity and spontaneously growing population. Economists celebrate such scientific inventions that make cheaper, safer choices.
Whenever an economist encounters a problem, he or she foremost reduces the problem to a model. The model represents a simplified version of the problem. Economists use models so that they are able to concentrate on essential issues of a problem. A model enables an economist to single out the critical points that would make empirical analysis of the problem easy. Modeling approach to finding the solutions to economic challenges is a modern trend. There is no particular model holds absolute correctness as long as it captures the significance of incentives.
Economic models are fundamental in ensuring that the solution an economist takes in the face of an economic quandary does not impact negatively on the society. Economic models base their building blocks on true notions and attitudes of the people they aspire to improve their lives. In the event of a market research, an economist considers the attitudes of the market target and bases its building blocks upon it. He then develops a model that would address all solutions according to a specific market. The result of such a process is a precise solution that does not pose negative externalities to the target market.
BYUI Education Center. (2013, July 01). ECON 150 BetaSize. Retrieved September 02, 2013, from BYUI Education Center Webite: https://courses.byui.edu/ECON_150/ECON_150_Old_Site/Lesson_01.htm#Section_02