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Text C. The Subject of the Science of Economics

The science of economics is based upon the facts of our everyday lives. Economists study our everyday lives and the general life of our communities in order to understand the whole economic system of which we are the part. They try to describe the facts of the economy in which we live, and to explain how it works. The economist’s methods should of course be strictly objective and scientific.

We need food, clothes and shelter. We probably would not go to work if we could satisfy these basic needs without working. But even when we have satisfied such basic needs, we may still want other things. Our lives might be more enjoyable if we had such things as radios, books and toys for the children. Human beings certainly have a wide and very complex range of wants. The science of economics is concerned with all our material needs: it is concerned with the desire to have a radio as well as the basic necessity of having enough food to eat.

I. Read Text C and say what basic needs and what non-essential wants are mentioned in the text. Put them down in the chart.

II. Speak on the science of economics. The questions below will help you:

1. What is the subject of the science of economics? 2. What methods do the economists use? 3. What needs and wants is the science of economics concerned with?

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