Economics as Social Science and as an

Applied Science
ECONOMICS AS AN APPLIED SCIENCE
Applied economics is the application of economic theory and
econometrics in specific settings. It is typically characterized by the
application of the core, referring to economic theory and econometrics,
as a means of dealing with partial issues in fields that include
demographic economics, labor economics, business economics,
agricultural economics, development economics, education economics,
health economics, monetary economics, economic history and many
others.

John Neville Keynes – attributed to be the first to use the phrase

“applied economics” to designate the application of economic theory to
the interpretation and explanation of particular economic phenomena.
ECONOMICS AS AN APPLIED SCIENCE
Econometric is the application of statistical methods to economic data
and is described as the branch of economics that aims to give
empirical content to economic relations. More precisely, it is "the
quantitative analysis of actual economic phenomena based on the
concurrent development of theory and observation, related by
appropriate methods of inference."
ECONOMIC THEORY
Economic theory of commercial activities (such as the
production and consumption of goods)
• consumerism - the theory that an increasing consumption
of goods is economically beneficial.
• Keynesianism – the economic theories of John Maynard
Keynes who advocated government monetary and fiscal
programs intended to stimulate business activity and
increase employment
• liberalism – an economic theory advocating free
competition and a self-regulating market
ECONOMIC THEORY
Economic theory of commercial activities (such as the
production and consumption of goods)
• Malthusian theory, Malthusianism – Malthus' theory that
population increase would outpace increases in the means
of subsistence
• monetarism – an economic theory holding that variations in
unemployment and the rate of inflation are usually caused
by changes in the supply of money
WHY ECONOMICS IS IMPORTANT

Economics will help the students understand why there is a need

for everybody, including the government, to budget and properly
allocate the use of whatever resources are available. It will help one
understand how to make more rational decisions in spending money,
saving part of it, and even investing some of it.

On the national level, economics will enable the students to take a

look on how the economy operates and to decide for themselves if
the government officials and leaders are effective in trying to shape
up the economy and formulate policies for the good of the nation.