The document discusses the scope and method of economics. It defines economics as the science of administering scarce resources in human society. It explores the differences between theoretical, applied and welfare economics. It also discusses how economics aims to identify general patterns of uniformity in human behavior and use empirical testing to verify hypotheses and models. While there is significant agreement among economists, disagreements can arise from different social objectives, facts, or failures to follow logical rules. Ideologies are rationalizations of beliefs not based on scientific procedure and only convince those with similar motivations.

1. The Scope and Method of Economics “ Economic is the science of the administration of scarce resources in human society.”

14. I, Pencil How much knowledge goes into the production of a single pencil? How many people are involved in the complete production process of a pencil? How much does a pencil cost?

21. The Science of Economics versus the Ideology of Environmentalism