1.2.1—Economics as social science

Economics is a social science that studies how people and organisations make choices under scarcity and how those choices affect resource allocation and welfare.

It uses models, data and empirical evidence to explain behaviour, but human decisions are influenced by institutions, expectations, culture and policy, so predictions are conditional rather than laws of nature.

A model of how a tax changes demand can be tested against observed data, then revised if consumers respond differently from the assumptions.

Calling economics a social science does not make it opinion-only; it uses evidence, while recognising that behaviour and context matter.