Scribd Logo
Upload

Welcome to Scribd!

  • 28 views

    Types of Economics

    Uploaded by

    Zeah Viendell Cruzat
    Microeconomics focuses on individual decision making units and analyzes how they respond to price changes by demanding goods. Macroeconomics studies entire economies on a national or international level using aggregated data to model economic growth, development, trade, policy, output and business cycles. While micro and macroeconomics use different theories and methods, aggregate macro phenomena result from summed micro behaviors, so integrating the two is important. Economics employs deductive logic and empirical observation, with debates around the suitability of experimental testing in economics due to difficulties generating consistent answers.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Types of Economics

    Uploaded by

    Zeah Viendell Cruzat
    28 views2 pages
    Microeconomics focuses on individual decision making units and analyzes how they respond to price changes by demanding goods. Macroeconomics studies entire economies on a national or international level using aggregated data to model economic growth, development, trade, policy, output and business cycles. While micro and macroeconomics use different theories and methods, aggregate macro phenomena result from summed micro behaviors, so integrating the two is important. Economics employs deductive logic and empirical observation, with debates around the suitability of experimental testing in economics due to difficulties generating consistent answers.

    Original Title

    TypesOfEconomics

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Microeconomics focuses on individual decision making units and analyzes how they respond to price changes by demanding goods. Macroeconomics studies entire economies on a national or international level using aggregated data to model economic growth, development, trade, policy, output and business cycles. While micro and macroeconomics use different theories and methods, aggregate macro phenomena result from summed micro behaviors, so integrating the two is important. Economics employs deductive logic and empirical observation, with debates around the suitability of experimental testing in economics due to difficulties generating consistent answers.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    28 views2 pages

    Types of Economics

    Uploaded by

    Zeah Viendell Cruzat
    Microeconomics focuses on individual decision making units and analyzes how they respond to price changes by demanding goods. Macroeconomics studies entire economies on a national or international level using aggregated data to model economic growth, development, trade, policy, output and business cycles. While micro and macroeconomics use different theories and methods, aggregate macro phenomena result from summed micro behaviors, so integrating the two is important. Economics employs deductive logic and empirical observation, with debates around the suitability of experimental testing in economics due to difficulties generating consistent answers.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    You are on page 1of 2

    Types of Economics

    The study of economics is generally broken down into two disciplines.

    Microeconomics focuses on how individual consumers and firms make decisions; these
    individual decision-making units can be a single person, a household, a business/organization, or
    a government agency. Analyzing certain aspects of human behavior, microeconomics tries to
    explain how they respond to changes in price and why they demand what they do at particular
    price levels. Microeconomics tries to explain how and why different goods are valued
    differently, how individuals make financial decisions, and how individuals best trade, coordinate,
    and cooperate with one another. Microeconomics' topics range from the dynamics of supply and
    demand to the efficiency and costs associated with producing goods and services; they also
    include how labor is divided and allocated; how business firms are organized and function; and
    how people approach uncertainty, risk, and strategic game theory.

    Macroeconomics studies an overall economy on both a national and international level, using
    highly aggregated economic data and variables to model the economy. Its focus can include a
    distinct geographical region, a country, a continent, or even the whole world. Its primary areas of
    study are recurrent economic cycles and broad economic growth and development. Topics
    studied include foreign trade, government fiscal and monetary policy, unemployment rates, the
    level of inflation and interest rates, the growth of total production output as reflected by changes
    in the Gross Domestic Product (GDP), and business cycles that result in expansions, booms,
    recessions, and depressions. 

    Micro- and macroeconomics are intertwined. Aggregate macroeconomic phenomena are


    obviously and literally just the sum of microeconomic phenomena. However, these two branches
    of economics use very different theories, models, and research methods, which sometimes
    appear to conflict with each other. Integrating the microeconomics foundations into
    macroeconomic theory and research is a major area of study for many economists.

    Schools of Economic Theory


    There are many competing, conflicting, or sometimes complementary theories and schools of
    thought within economics.

    Economists employ many different methods of research from logical deduction to pure data
    mining. Economic theory often progresses through deductive processes, including mathematical
    logic, where the implications of specific human activities are considered in a "means-ends"
    framework. This type of economics deduces, for example, that it is more efficient for individuals
    or companies to specialize in specific types of labor and then trade for their other needs or wants,
    rather than trying to produce everything they need or want on their own. It also demonstrates
    trade is most efficient when coordinated through a medium of exchange, or money. Economic
    laws deduced in this way tend to be very general and not give specific results: they can say
    profits incentivize new competitors to enter a market, but not necessarily how many will do so.
    Still, they do provide key insights for understanding the behavior of financial markets,
    governments, economies—and human decisions behind these entities. &nabs.
    Other branches of economic thought emphasize empiricism, rather than formal logic—
    specifically, logical positivist methods, which attempt to use the procedural observations
    and falsifiable tests associated with the natural sciences. Some economists even use direct
    experimental methods in their research, with subjects asked to make simulated economic
    decisions in a controlled environment. Since true experiments may be difficult, impossible, or
    unethical to use in economics, empirical economists mostly rely on simplifying assumptions and
    retroactive data analysis. However, some economists argue economics is not well suited to
    empirical testing, and that such methods often generate incorrect or inconsistent answers.

    You might also like

    pFad - Phonifier reborn

    Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

    Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


    Alternative Proxies:

    Alternative Proxy

    pFad Proxy

    pFad v3 Proxy

    pFad v4 Proxy