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Unit 1.2: Economics as a social science

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  • Units 1-2: Microeconomics/
  • Unit 1: Introduction to economics/
  • Unit 1.2: Economics as a social science

Introduction

This lesson is the beginning of the the IB economics course and addresses the beginning concepts of the course. 

It is important for your students to understand the difference between statements which can be proven and those which cannot be.  However, in many cases a normative statement may very well be universally accepted as true.  For example in economics it is widely accepted that when governments reduce tax rates entrepreneurship in the economy is encouraged.  Though as this statement cannot be proven it remains a normative rather than a positive statement.

Why not have your students read the following  Positive v normative economics before starting this lesson?

Enquiry question

To what extent can economics be considered a science? How do we distinguish between economic statements that are provable (positive), judgement based (normative) or sometimes in the era of fake media the simply false?

Lesson notes

Lesson time: 1 hour

Lesson objectives:

To address the enquiry question above, is economics a science? 

To understand the difference between economic statements that are provable (positive), judgement based (normative) or simply false?  To what extent should IB students question the facts or research they are presented with?

Teacher notes:

1. Processes - start with the initial guiding question of how old the subject is?  This may require some time to discuss (10 minutes).

2. Technical vocabulary - print off and handout the class activities.

3. Complete the second activity: is economics a science?  Watch the short video and again this may take some time to discuss.  One of the discussion areas is whether economics is entirely a social science or are the elements of the natural sciences in the subject? (15 minutes)

4. Possibilities - continue with the handout after watching the short video and complete the TOK exercise, including the short presentation.  Students should tick the boxes which are appropriate to the place of economics in science.

5. Activity 3 - begin this activity by writing a series of statements on the whiteboard and ask the class to divide each into positive and normative and statements.  The students should also be encouraged to offer their own examples. (10 minutes).  If you begin the lesson with the pre-lesson background material then add on another 5 minutes.

6. Fact sheet - assessment - print out the handout which includes a range of statements that can be divided into normative, positive and false statements.  The questions are also available via the powerpoint presentation.  (10 minutes)

7. Activity - share the class exercise on China and encourage your classes to share their views on this statement.  My suggested response is included on the page.  (10 minutes)

8. Homework - the investigation exercise on different economics can be completed as a homework exercise. (5 minutes if completed as a homework exercise).

The activities on this page are available as a PDF file at:  Is economics a science 

Key terms:

Positive economic statement - objective statements that can be tested, amended or rejected by referring to the available evidence.

Normative economic statement - a subjective statement of opinion which can neither be proven or dis-proven.

1. Opening question: How old is economics and is it a science?

Investigate the following question: how old is economics as a subject?

While the concept of economy and economic strength pre dates the birth of Christ, with records dating back to Ancient Greece, when the term economics was called Oἰκονομία or "rules of good house management, the first worldwide known economist is generally credited as being Adam, often referred to as the Father of economics.

Activity 2: Is economics a science?

Consider the following video:

Click on the following presentation about the differences between natural and human sciences and then complete the following table which answers the question 'Is economics a natural or a social science?

  Social and natural sciences

Natural sciences

Social sciences

Deals with natural events

Concerns human behaviour

Arose from curiosity about the world

Arose from curiosity about individuals

Proof is easy to establish

Providing hard evidence is difficult

Research completed by repeating an experiment under controlled conditions

Research is completed via observation and empirical data

Research faces technical limitations such as the inability to conduct precise measurements

Research is hindered by the complexity of a field in which single variables cannot be controlled for easily

Data is more likely to be quantitative

Data is more likely to be qualitative

You should have ticked most or perhaps all of the statements indicating that economics is a social science and not a natural science like physics and chemistry.

Activity 3: Positive or normative statement exercise

Download the following power point and complete the true / false, normative / positive statement exercise.

Positive and normative powerpoint

China reports a GDP growth rate of 9% for the year 2022. To what extent can this be considered a 'positive statement'? How can we be sure of the reliability of this data?

Hint:

As you will learn later on in the course national income calculations are relatively accurate.  GDP is calculated in a uniform way (although there are elements of guesswork within the calculations).  Therefore, we should view China's growth rate of 9% as a positive statement.  This is because it measures precise quantitative data.  However, students should be critical of any data which cannot be independently verified and the question is 'which independent bodies are verifying the validity of China's GDP figures'?

Activity 4: Relevant TOK essay titles

What criteria should be adopted for evaluating normative statements in economics?

How do we test knowledge claims in economics? Should all knowledge claims in economics be testable?  If a claim is not testable, is it meaningless?

What are the roles played by abstract reasoning and concrete evidence in constructing economic theory?

To what extent is economics value-free?

Is there a different method of justifying qualitative rather than quantitative knowledge claims? If so, does this lead to one or other being inherently more reliable

What distinguishes a social science from a natural science?  Which elements of both does the subject of economics include?

Is there a “social scientific method” as opposed to a “natural scientific method”? What might be the similarities and differences?

More information on the question of whether of economics is a science or not can be found at the following link:

Article one - is economics a science?

Article two - is economics a science?

5. Homework exercise

Research other leading economists and present your findings to the class.  Economists that you may wish to investigate include:

  • Alfred Marshall
  • Alan Greenspan
  • Adam Smith
  • Maynard Keynes
  • Milton Friedman
  • Amartya Sen
  • Benjamin Graham
  • Emily Balch
  • Karl Marx.

The activities on this page link to the following textbook page: Unit 1.2 How do economists approach the world?