Economics

Economics is one of the social sciences; Economists explore how goods and services which are produced should be distributed among its population and aim to develop theories of human behaviour and test them against facts.  Many of the problems which dominate our newspaper headlines are economic problems. Why are some countries poor with very low growth rates while a small number of countries enjoy high living standards and high growth rates? What is the role of international trade, and the movement of capital from one country to another, in explaining these global inequalities? Why are some countries so much more successful at creating employment or reducing unemployment than other countries? Within countries, why do some people earn so much more than others, and what are the best ways to tackle and reduce poverty? Is it possible to pursue economic growth and still protect our natural and physical environments? How should governments try to raise the finance needed to pay for health and education services and income support programmes? What is the proper role for government in the economy? Would we be better off with much lower taxes but also poorer social services than we presently enjoy?  Economics is, therefore, both positive (explains behaviour) and normative (evaluates outcomes and presents policies to improve the situation).