Often a question arises : Whether economics is a science or an art or both. A subject is considered science if it is a systematized body of knowledge which studies the relationship between cause and effect, it is capable of measurement, it has its own methodological apparatus and it has the ability to forecast. If we analyse Economics, we find that it has all the features of science. Like science, it studies cause and effect relationship between economic phenomena.

To understand, let us take the law of demand. It explains the cause and effect relationship between price and demand for a commodity. It says, given other things to be constant, as price rises, the demand decreases. Similarly, like science, it is capable of being measured, the measurement is in terms of money. It has its own methodology of study (induction and deduction) and it forecasts the future market conditions with the help of various statistical and non-statistical tools.

Economics is an art. Art is nothing but practice of knowledge. Where science teaches us to know, art teaches us to do. Unlike science which is theoretical, art is practical. If we analyse. Economics, we find that it has the features of an art also. Its various branches — consumption, production and public finance, etc. provide practical solutions to various economic problems. It helps in solving various economic problems which we fiice in our day-to-day life.

Thus, Economics is both a science and an art. It is science in its methodology and art in its application. Study of the problem of unemployment is science but framing suitable policies for reducing the extent of unemployment is an art.