economic question. i dont really get this question.?

Question

why is it significant that economic is not a laboratory science? What problems may be involved in deriving and applying economic principles?

Answer 1

Not to be a naysayer, but there is a whole sub-specialty in economics called Experimental Economics that tests auction hypothesis and economic models through live experiments with participants.

So Economics IS a laboratory science.

If you're interested look at the Journal of Experimental Economics. One of my old professors is very involved in it and you could look up his articles as well Dan Friedman at the University of California: Santa Cruz.

Answer 2

The "hard" sciences like chemistry and physics are REPEATABLE. If one scientists publishes an hypothesis in a peer-reviewed journal, any other scientist can check out the hypothesis by repeating the experiment to see if similar results are achieved.

The "social" sciences like economics and history are not repeatable. We can't build up armies and repeat the Battle of Waterloo to see what happens, or repeat the Stock Market Crash of 1929 and The Depression to test an hypothesis.

In Econ especially, 70% of all economic behavior is done by individuals acting on personal preferences that can never be isolated and repeated. (Would "Star Wars" be a hit movie in 2007? Would The Beatles be a worldwide phenomenon all over again?)

These things can't be solved by laboratory experiment - we can only guess because the "laboratory" is the whole wide world.

Answer 3

I the physical sciences experiments can be conducted, often holding all things constant except the independent variable, to prove or disprove theory. In economics this is not possible so wrong theories persist and rarely are questions decided beyond doubt. Even when there is evidence of a theory being statistically true, the relative importance to different phenomena is not often determined. Not being able to resort to experiment to decide the truth about economic questions leads to controversies that lasts decades and sometimes centuries.

Answer 4

Why it is significant that economics is not a a labratory science?

You can't put "economics" into a test tube. You can't test "economics" on lab rats. Economic theories make predictions and suggest policies that will affect real people's lives, their jobs, and their futures. Your "laboratory" is every living human on the planet. If you screw up the "theory", you can ruin real lives, cause real misery, and throw a whole economy into a recession.

I hope this helps.

Answer 5

because i believe that it can not be controlled in experimental ways like laboratory sciences. u can not get the people to buy what you want in a lab or get them to spend THERE money on what you want them too. not to mention that the huge out of human control variables that economy takes into consideration. thats what i think.

Answer 6

because a lot of economics is based on theory....like supply side economics for example