Nature of Economics

The economists are also divided regarding the nature of economics. The following questions are generally covered in the nature of economics.

a) Is economics a science or an art?
b) Is it a positive science or a normative science?

Economics as a Science or an Art:

Economics is both a science and an art. Economics is considered as a science because it is a systematic knowledge derived from observation, study and experimentation. However, the degree of perfection of economic laws is less compared with the laws of pure sciences. An art is the practical application of knowledge for achieving definite ends. A science teaches us to know a phenomenon and an art teaches us to do a thing. For example, there is inflation in Bangladesh. This information is derived from the positive science. The government takes certain fiscal and monetary measures to bring down the general level of prices in the country. The study of these fiscal and monetary measures to bring down inflation makes the subject of economics as an art.

After arriving at a conclusion that economics is both a science as well as an art. Here arises another controversy. Is economics a positive science or a normative science?

Economics is Positive or Normative Science:

There are again differences of opinions among economists whether economics is a positive or normative science. Lionel Robbins, Senior and Friedman have described economics as a positive science. They opined that economics is based on logic. It is a value theory only. It is, therefore, neutral between ends.
Marshall, Pigou, Hawtrey, Keynes and many other economists regard economics as a normative science. According to them the real function of the science is to increase the well being of man. They have given suggestions in their works for promotion of human welfare.
Foe example, Malthus has given suggestions of checking the rising of population. M. Keyness has suggested measures to remove unemployment.

Finally, positive economics only explain “what is” (the population size of the US?)
Normative Economics explain “what ought to be” (what should be the optimum population size for the US?)
Economics, to conclude has both theoretical as well as practical side. In other words, it is both a positive and a normative science.