Sciences Related to Economics

Economics provides the foundation for business studies.

Economics is a field of knowledge that studies the production, distribution and consumption of goods and services. It is closely interwoven with mathematics and social sciences, which can be defined as studies of the society. While mathematics primarily provides the tools for economics, such as regression analysis, social sciences give it the data with which to operate. For example, history provides economics with plenty of historic production data to analyze.

History

History is related to economics in a number of ways. First, it provides economics with the material that economists can then analyze. Secondly, history has itself been influenced to a large extent by economic factors. Indeed, many wars, conflicts and revolutions came about as a result of economic disputes. In addition, numerous inventions that shaped the course of history where introduced to improve the economic condition of the inventor or people in general.

Geography

Geography is another social science that is closely linked to economics. A favorable geographic position is a large determinant of the prosperity of a nation. The primary factors in a country's geographic position that determine its economic potential are proximity to markets and abundance of available resources.

Political Science

Politics and economics come hand in hand. As John Maynard Keynes, a famous economist, once observed, "Practical men, who believe themselves to be quite exempt from any intellectual influence, are usually the slaves of some defunct economist." Economic theories influence politics. For example, the ideas of economic liberalization pioneered by Milton Freedman had a large influence on the policies of President Reagan. Political theories also influence economics. For example, Adam Smith used many political ideas of John Locke.

Philisophy

Philosophy and economics are so closely intertwined that it is sometimes impossible to distinguish one from the other. For example, much of Karl Marx's writing can be categorized as both economic and philosophical works. Another example is Milton Freedman. While he is primarily regarded as an economist, a distinct libertarian philosophy plays a central role in all his ideas.

Mathematics

Mathematics provides the tools that economists use. Particularly important are algebra and calculus, as they allow economists to construct elaborate econometric models that study the gross domestic product (GDP), employment, inflation and other macroeconomic variables. Mathematics is also used in microeconomics, for example, to calculate the optimal price of an economic good.

References

• U.S. Bureau of Labor Statistics: Economists
• "Economics"; Walter J. Wessels; 2006
• ThinkExist.com: John Maynard Keynes Quotes