Meaning of economics, how it is an art and a science
Meaning of economics The term “Economics” came from the Greek word “Oikonomos”. The word “oikonomos” can be decomposed into two parts, “oiko-” (means “house”) and “-nomos” (means “rule” or “law”). Therefore, “Oikonomos” means rules of household management (house manager). The oikos (household) served as the fundamental unit for organizing social, political, and economic life. Households have limited resources with unlimited needs, so, they have the problem of how to manage those scarce resources to satisfy their unlimited needs. Scarcity of resources and unlimitedness of needs turned out economics. Therefore, Economics is a social science which study how to use limited resources to satisfy our unlimited needs. Economics as an art and as a science Economics is both a science and an art. How can we answer these questions “What do we know?” and “How do we know that what we know is right?” Economics is science in terms of its accumulation of knowledge base, descriptive knowledg...