Economics in the Economic Sciences

Economics studies economic activities and is part of the subject group Economic and Management Sciences. Economics has a connection with the other subjects in this group because the other subjects exist as a result of economic activities:

Economics has a connection with the following subjects in the Economic and Management Sciences group:

• Accounting. Accounting involves recording a business’s financial transactions and reporting on the financial position of a business in the form of financial statements.
• Business Studies. Business Studies deals with the effective management of businesses to maximise profit.
• Commercial Law. Commercial Law involves the legal aspects of buying and selling transactions. It ensures that transactions meet the expectations of buyers and sellers.
• Financial Mathematics. Financial Mathematics deals with the time value of money and involves interest rates, periods for which money is borrowed or invested, instalments payable and the present and future values of money.

The relationship of Economics with other sciences

The scientific field of study is divided into the natural sciences and the social sciences.

Economics is a social science and there is a closer relationship between Economics and the other social sciences than between Economics and the natural sciences.

Economics sometimes uses the content and research methods of the following sciences:

• Statistics. Statistics collects, classifies and analyses information that is in the form of figures. Economics makes use of statistical techniques to make information more manageable and understandable. The application of Statistics in Economics is called Econometrics.
• Mathematics. Mathematics establishes the relationship between figures. Economics uses mathematical principles to compile theoretical models that can show the relationship between economic phenomena.
• Information Technology. Economists use computer programs to process and present economic data. A good economist can code.
• Law. People’s decisions and the government’s actions are promoted and limited by national laws. Economics is practised within the legal framework of the relevant country.
• Politics. Politics deals with power and government. Economists must keep the politics of the country in mind when promoting economic activities. Economics started as Political Economy!
• Sociology. Sociology studies the nature and development of institutions, groups and structures in society. The functioning of society determines how the economy will function.
• Geography. Geography studies the earth’s physical features. The geographical features of a country have a determining influence on economic activities. Geographical Economics is a specialisation.