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1. BUILDING ECONOMICS AND CONSTRUCTION
MANAGEMENT (ARCH 703)
CA-I ASSINGMENT
DEPARTMENT- ARCHITECTURE
NAME- ARGHYADIP SARKAR
SECTION -A
SEMESTER-7TH
ROLL NO-27502319006
TOPIC-
Definition of Economics, Economics as Science and Art.
OMDAYAL GROUP OF INSTITUTIONS COLLEGE OF
ENGINEERING AND ARCHITECTURE

2. • DEFINITION OF ECONOMICS
“Economics is a study of man in the ordinary business of life. It enquires how he gets his income and how he
uses it. Thus, it is on the one side, the study of wealth and on the other and more important side, a part of the
study of man”.
• Stages as Economics developed as a subject:
• 1. Wealth Definition
• 2. Material Welfare Definition
• 3. Scarcity and Choice Definition
• 4. Development and Growth Definition
• ECONOMICS: STUDY OF AN ECONOMY OR ECONOMIC SYSTEM
• Briefly speaking, economics can be defined as a study of an economic system in all its aspects -
structure, working, performance, problems, and their solutions.
• (a) Alternative forms of an economy like capitalism, socialism and a mixed economy.
• (b) Economic decisions and their implementation by – Individual economic units like individuals,
households and business units – Groups of economic units, institutions – Public Authorities

3. • ECONOMICS – AS A SCIENCE AND AS AN ART
• The very first question to describe the nature of economics is to ask - whether economics is a science or an
art or both.
• (i) Economics as a Science: A subject is considered science if:
• – It is a systematised body of knowledge which studies the relationship between cause and effect.
• – It is capable of measurement.
• – It has its own methodological apparatus.
• – It should have the ability to forecast.
• – If we analyse economics, we find that it has all the features of science.
• Economics and Positive Science
• •The following statements can ensure economics as a positive science, such as; • (i) Logically based: •The
ideas of economics are based on absolute logical clarifications and moreover, it develops relationship
between cause and effect. • (ii) Labour Specialisation: • Labour law is an important topic of economics. It is
based on the law of specialisation of labour Economists must concern with the causes and effects of labour-
division. • (iii) Not Neutral: • Economics is not a neutral between positive and normative sciences. According
to most economists, economics is merely positive science rather than normative science

4. (ii) Economics as an Art:
• A discipline of study is termed an art if it tells us how to do a thing that is to achieve an end (objective). It is noteworthy that
the final justification for studying economics lies in the possibility of our ability to use it for solving economic problems faced by
us. Prof. J. M. Keynes says that “An art is a system of rules for the achievement of a given end.” We know that in practice,
economics is used for achieving a variety of goals. Every individual economic unit whether acting as a consumer as a producer
as an investor as a supplier of an input or in any other capacity has an economic goal to achieve. It decides its course of action
by keeping in mind the end to be achieved and the situation faced by it. Even at national level the authorities formulate a
variety of policies. In certain cases they attempt to plan and operate the entire economy so as to achieve a given set of ends.
Therefore, whether some theoreticians like it or not, economic laws are widely used and relied upon at all levels of our
economic activities. And that makes economics an art.
Economics and Normative Science:
The following statements can ensure economics as a normative science, such as,
• (i) EmotionalView: • A rational human being has not only logical view but also has sentimental attachments and emotional views
regarding any activity.These emotional attachments are all coming under normative statements. Hence, economics is a normative
science.
• (ii) Welfare Activity: • Economics is a science of human welfare,All the economic forwarded their theories for the development of human
standard of living Hence, all the economic statements have their respective normative views.
• (iii) Economic Planning:
• Economic planning is one of the main instruments of economic development. Several economists have given their personal views for the
successful implementation of economic plan. Hence, economics is coming under normative science

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