ABSTRACT
Economics, in the most general sense, is the examination of resource allocation and its complexities. Little would be done in modern society without the processes of exchange, the valuation of goods and services, or the promotion of social organization through resource distribution methods. This chapter provides a closer examination of three individual economic theories – rational choice theory, signaling theory, and human capital theory – that can be applied to social science research. While there are many economic theories in existence, the theories discussed here should offer a useful starting point. Other theories examined in this book also connect to economics and resource distribution (e.g., Marxism or social capital theory) and these chapters should also be reviewed to obtain a larger perspective on the role and impact that economics plays in research and in daily life. Economic theories can help researchers understand the rationale and actions of individuals as they make decisions about or are involved in resource allocation. Economic researchers can use economic theories to examine the “why” of consumer behavior as well as the consumer behavior itself.
