The Nature and Significance of economic science and its relevance to law, Difference between Micro and Macro Economics, Positive economics and Normative economics

A landlord raises the rent on a one-room flat in Dadar because three families are bidding for it. A Bench decides, days later, whether a rent-control law can stop him. One event is economics happening; the other is law answering it. A law student who cannot read the first will misjudge the second — which is exactly why this paper opens with what economics is, and what it is not.

In two minutes

Economics studies how people and societies allocate scarce resources among competing wants, and it matters to a law student because almost every statute you will read is a policy choice about that allocation.

The rest of this chapter

The full explanation, the cheat sheet, every previous-year question at every mark weight, the quiz and the answer skeletons are part of Economics on LexBlox Semester. Sign in to unlock the subject, or read Module 1 of Legal Language and Writing free.