What is Economics?

Economics is a field of social science that seeks to understand how individuals make decisions or take actions concerning the allocation of finite or limited resources. 

What are the Elements of Economics?

Economics involves three elements including production, distribution, and consumption of products and services. 

What Does Economics Analyze?

Economics analyzes the way individuals, government authorities, organizations, and countries choose to allocate resources so as to gain maximum satisfaction of their needs and wants. 

Also, economists seek to identify methods for knowing how such communities should manage and instill their efforts for arriving at a stage of the highest output levels. 

How Does Economic Analysis Develop?

Economic analysis usually develops through deductive procedures such as mathematical logic that takes into consideration the effects of particular activities in a specific means-ends framework. 

What are the Types of Economics?

Economics consists of two core areas: 

• microeconomics
• macroeconomics

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What is Microeconomics?

Microeconomics lays emphasis on the factors that influence producers and consumers in taking decisions. This can be one individual, a household, an organization, or a public entity. 

It considers the way people exchange goods and services with one another, and how market forces ascertain the prices of products and services. 

Besides, it also studies the extent of efficiency and costs involved in the manufacturing of goods and services, the allocation and division of labor force, risk, uncertainty, and game theory.

What is Macroeconomics?

Macroeconomics observes the functioning of the whole economy which covers a different location, a continent, or maybe the entire world. 

It covers several topics including monetary policy, fiscal policy, rates of unemployment, gross domestic product related changes, and economic cycles that generate the following stages: expansion, boom, recession, and depression.

What are the Schools of Economics?

The most commonly known schools of economic thought are: 

Keynesian and Neoclassical.

What is the core belief of Neoclassical School of Economics?

The neoclassical school of economics proposes that the production of goods (supply) is the driving force behind generating demand for the Product. 

What is the core belief of Keynesian School of Economics?

The Keynesian school of economics focuses on the generation of demand for products - primarily through government involvement. 

What are Incentives and Subjective Value?

Economics is based on how individuals act when they want to achieve the maximum gain or utility from a product or service. Obtaining value is an incentive for activity that creates perceived value for the actor (subjective value). 

Related Topics

• Economics
• Scarcity in Economics 
• Division of Labor
• Microeconomics
• Macroeconomics
• Theory and Models 
• Traditional Economy
• Command Economy
• Centrally Planned Economy
• Market Economy
• Free Market Economy
• Collaborative Economy
• Private Enterprise
• Mixed Economy
• Underground Economy
• Black Economy
• Government Market Regulation
• Capitalism
• Conscious Capitalism
• Communism
• Centrally Planned Economy
• Socialism
• Marxism
• Egalitarianism
• Plutocracy
• Neoliberalism
• Underground Economy
• Black Economy
• Globalization
• Imports and Exports
• Gross Domestic Product
• Fiscal Policy
• Social Economics
• Positive Economics
• Mathematical Economics
• Constitutional Economics
• Labor Economics
• Organizational Economics
• Development Economics
• Behavioral Economics
• Environmental Economics
• Evolutionary Economics
• True-Cost Economics
• Managerical Economics
• Experimental Economics
• Welfare Economics
• American Economic Association