What is an economic theory?

An economic theory is a set of ideas and principles that outline how different economies function. Depending on their particular role, an economist may employ theories for different purposes. For instance, some theories aim to describe particular economic phenomena, such as inflation or supply and demand, and why they occur.

What are some examples of economic theories?

For instance, some theories aim to describe particular economic phenomena, such as inflation or supply and demand, and why they occur. Other economic theories may provide a framework of thought that allows economists to analyze, interpret and predict the behavior of financial markets, industries and governments.

What does economics mean in sociology?

economics, social science that seeks to analyze and describe the production, distribution, and consumption of wealth. In the 19th century economics was the hobby of gentlemen of leisure and the vocation of a few academics; economists wrote about economic policy but were rarely consulted by legislators before decisions were made.