Economics as a science

Economics is a science because economists use systematic methods to study how people make choices with limited resources. Think of it like chemistry—just as chemists test hypotheses in laboratories, economists observe real-world behaviour and create theories to explain it.

Several important concepts help us understand economics better. Scarcity means resources are limited while wants are unlimited—Nigeria's oil wealth is finite, yet demand keeps growing. Opportunity cost is what you give up to get something else; if you choose to study medicine instead of law, medicine is your choice but law is your opportunity cost. Ceteris paribus means "all things being equal"—we assume other factors stay constant when testing one variable.

These concepts work together. When Nigeria faces scarcity of electricity, the government must consider opportunity costs of different energy sources before deciding on expansion plans.