What Is Economics

What Is Economics Can You Define Economics? ChaptersEach Individual Has Their Own Economic TheoryThe Difficulty in Finding Economic MeaningWhat Is Economics? Find Your Own AnswerEconomics can have many definitions. Often, the meaning of economics depends on which economist you ask. Although in the strictest sense, economics is defined in the dictionary as:“The branch of knowledge concerned with the production, consumption, and transfer of wealth”; or“The condition of a region or group as regards material prosperity.”However, economics as a social science can have more meanings and does not have to necessarily focus on wealth or prosperity.This is because economics seeps into our daily lives, not only through our banking and monetary systems, but also when it comes to our fundamental understanding of human behaviour and society as a whole.This is also reflected in the wide variety of economic specialisms that exist, including:Financial economics;Behavioural economics;International economics; andEnvironmental economics.S o when it comes to understanding what economics really means, and how you can benefit from studying it, there really is so much to know and learn.That’s why it can help to have an economics tutor by your side, to help guide you through the maze that an economics curriculum can sometimes feel like. A economics teacher can be very beneficial, as he or she can provide you with a different perspective on economics, and introduce you to economic systems or concepts you may not have previously seen in your studies.However, there’s nothing to stop you learning more about economics, its wider meaning, and current economic issues on your own as well. Below, we outline the variety of meanings that economics as a term can have, and what that means for your economics studies.Learn the basics of economics here.Economic growth forms part of economic theory. (Source: CC BY-SA 2.0, 401(K) 2012, Wikimedia Commons)MicroeconomicsThese two fields are completely separate to one another, and what you learn or examine within economics will really depend on what field you’re looking at. What's more, your definition of what economics is may change depending on whether you are a specialist in microeconomics or macroeconomics.MacroeconomicsMacroeconomics as a field looks at how the economy behaves in aggregate and what influences it.In practice, this means that macroeconomics can comprise the study of items such as:Inflation;Gross domestic product (GDP);Monetary policies; andRates of employment or unemployment.Essentially, any item that can influence how the economy behaves as a whole should fall within the scope of macroeconomic analysis.The benefits of macroeconomics are numerous. For example, governments can make use of macroeconomic analysis to understand how best to develop their economic policies, as well as how to improve the growth of the economy or boost factors such as unemployment.Modern macroeconomics is often associated with John Maynard Keynes. Keynes is one of the m ost influential economists ever, whose ideas went against previous beliefs in laissez-faire economic policies.MicroeconomicsAs the name of the term suggests, microeconomics is the polar opposite of macroeconomics. It is the study of the individual items within an economy, from people to households or companies, and the decisions and actions they take.In particular, specialists in microeconomics are interested in how resources are managed and distributed at the individual level.Examples of economic items falling within the microeconomics sphere are:Labour;Factors of production; andSupply and demandIn addition, relatively newer fields such as behavioural economics, which looks at how human psychology impacts our decision-making and its impact on our economic reality, fall within the realm of microeconomics.Supply and demand curves carry a lot of economic meaning. (Source: Public Domain, Wdflake, Wikimedia Commons)What Is Economics? Find Your Own AnswerAs we’ve seen, the true definit ion of economics is often elusive. Whilst this can be frustrating for learners of this subject, both at school and at university, it can also be a liberating realisation.This is because, in essence, you can make economics mean whatever you would like it to mean. Fundamentally, economics is so present in almost every aspect of our lives, from:The news that we read;The state of our local and global economy; andHow we behave with one another during financial or social interactions.As a result, you can draw inspiration and meaning from economics in the way that most appeals to you and your learning preferences.For example, you may prefer a definition of economics that focuses solely on wealth creation or distribution. Alternatively, you may like an expanded definition of economics, and prefer to see economics as a study in the human condition and rational decision-making.You may also find that the economic areas that interest you may be influenced by how you perceive economics. For exam ple, if you prefer to see economics in a more traditional light, you may enjoy learning more about financial economics or even international economics, and perhaps a field such as macroeconomics would be more appealing to you.However, if you’re more interested in the psychology behind why we behave in the way we do or why decisions in stock markets can be irrational at times, then perhaps behavioural economics is where you can derive the most meaning in your studies of economics.Of course, if you’re struggling to navigate your way around economics, or need some assistance learning more about what the key economists of the modern era believe economics represents as a field, then you can always find some help in the form of a tutor.An economics tutor can really help you focus your studies in economics, and help you to pinpoint what interests you about economists. What’s more, once you’ve found the niche you’re most interested in, your tutor can point you to economists that h ave pioneered that field, and help you to study more about their theories and ideas.Websites such as Superprof offer a range of economics tutors, whether you’re looking for online tuition, or would prefer to work with a tutor in person. Simply enter your postcode and the subject you’d like a tutor for, and Superprof will match you with the best tutors in your area.Who are the Nobel Prize winners for economic discoveries?