“Law is defined as the rules and regulations which people have to obey. Usually these laws are made by government or some agency but in economics things are little different. Economics laws are made by economists and there is no restriction to obey them. Economic laws are statements of tendencies that are likely to result from certain causes".
Characteristics of Economic Laws:
Economic laws have following characteristics:
Lack in Accuracy:
Economic laws change as they are related with human behavior which changes from time to time.
There is no penalty for the people who do not follow economic laws.
Lack of Predictability:
The thing which we must know that all the economic laws are made on assumptions so there is no chance for prediction.
Qualitative and Quantitative:
These laws are generally qualitative in nature. Laws explain the relationship but not its value.
There is no restriction on any member of the society to follow these laws, they are totally optional.
More Reliable then Laws of other Social Sciences:
In economics money is used to calculate various changes but other sciences have no such valuable tool, so that economic laws are often reliable than the laws of other social sciences.