Economics and Jurisprudence:Jurisprudence is the law of science. The economic growth of a nation depends to a vast extent on its legal system. Good laws encourage economic growth and bad laws act as an impediment to expansion. For illustration, in the past whenever foreigners invest in any country, they employed to say that taxation was complicated and not good. Of course, now things have enhanced. Therefore we must have simple and clear laws in the fields of taxation and labor legislation to encourage economic growth.Economics and psychology:Psychology is the science of mind. This deals with all types of human behavior. For illustration, we have mob psychology, child psychology, industrial psychology and criminal psychology. However economics studies one aspect of human behavior. It studies human behavior with reference to unlimited needs and limited means. Of late, psychology has become significant in analyzing economic problems. To deal with labor problems, we should understand industrial psychology. And a good businessman should understand the psychology of buyers whenever he wants to alter the price of his good. Many significant laws of economics are based on psychology. For illustration, we have the law of demolishing marginal utility. It states that the more and more of a thing you have, the less and less you desire it.
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