Nature of Economics - Class-12

Nature of Economics - Class-12

Economics seems full of charts, numbers, and ideas, yet deep down, it's about folks - how they survive, decide things, or handle scarce stuff. What drives this field comes from regular choices: picking a job, grabbing a smartphone, setting cash aside, maybe managing a shop.

To get economics, you don't have to be super smart. All it takes is knowing this one thing:

People always want more, yet what’s available doesn’t grow. One wish leads to another, still supply stays fixed.

Everything in economics comes down to this one fact.

1. Economics as a Social Science

Economics is about humans, not robots - since feelings shape choices more than cold logic ever could.

It looks at how people act in everyday life - like picking this instead of that, how groups handle what they’ve got, also where cash moves inside a system.

Besides being tricky to predict, human actions mean economics can't match physics in precision. Still, it’s a field focused on spotting trends in what folks do.

2. Economics Studies Human Wants & Choices

Every day, people make choices:

Should I spend or save?

Does a company need to make extra stuff - or cut back instead?

Does a government need higher taxes - or lower ones?

Economics checks out these choices, then figures out what's behind them.

Decisions matter when resources are tight.

3. Economics Has Two Sides: Micro & Macro

Microeconomics

This feels like focusing on one person at a time - say, shoppers or businesses - or just one marketplace instead of everything at once.

It looks into things such as:

What makes costs go up or down

How companies pick what they make

How folks respond when costs go up or down

Macroeconomics

This is the overall view - the whole nation's financial system.

It studies:

Economic growth

Inflation

Unemployment

Government policies

One side shows part of it - then the other fills in what’s missing. Each adds something different but connected.

4. Economics Is Both Art and Science

Economics as a Science

It runs on facts, reasoning, also structured steps.

Like researchers checking ideas, folks who study money examine how numbers connect.

Economics as an Art

It’s useful when tackling real-life issues - like finding quick fixes or working through tricky situations

What’s the best way for a government to keep prices from rising too fast?

What’s the best way for a company to earn more money?

What’s a good way for families to handle money smarter?

Yeah, it combines logic with real-life choices - though sometimes one matters more than the other.

5. Economics Aims to Improve Human Welfare

In the end, economics is more than cash - it’s also about choices.

It's tied to feeling good - helping life improve.

It deals with:

Better handling of what we’ve got

Reducing poverty

Sharing money fairly

Improving living standards

Economics hands us ways to shape a fairer world.

6. Normative vs Positive Economics

Positive Economics

“What is.”

Factual, logical statements.

Joblessness rose up to 8%.

Normative Economics

“What should be.”

Value-based opinions.

The government ought to make extra job opportunities.

Each gives insight into how economies work - also guiding decisions on rules that affect money matters.

Conclusion

The study of money isn't just what textbooks explain.

It is about:

Choices we make

Resources we use

Our goal is people’s well-being

The kind of community we aim to create

Economics? It’s just about understanding everyday choices - like what drives people's actions or how to pick better options when nothing comes free.