Economics

What are the branches of economics?

User Avatar
Wiki User
2012-09-21 18:52:02

The three general fields of economics are:

Macroeconomics is the study of a group of individual

economic agents in tandem deal with the condition of

scarcity (e.g.) countries).

Microeconomics is the study of the interaction of

individual economic agents deal with the condition of scarcity

(e.g.) firms).

Mathematical economics deals with the application and

analysis of mathematical and statistical methods to formulate and

solve economic problems.

The branches of economics are Microeconomics and

Macroeconomics.

Microeconomics - ("small" economics), which examines the

economic behavior of agents (including individuals and firms)

and;

Macroeconomics - ("big" economics), addressing issues of

unemployment, inflation, monetary and fiscal policy for an entire

economy.

macroeconomics n microeconomics

Some of the major branches of Economics are listed as under:

1. Microeconomics: This is considered to be the basic

economics. Microeconomics may be defined as that branch of economic

analysis which studies the economic behaviour of the individual

unit, may be a person, a particular household, or a particular

firm. It is a study of one particular unit rather than all the

units combined together. The microeconomics is also described as

price and value theory, the theory of the household, the firm and

the industry. Most production and welfare theories are of the

microeconomics variety.

2. Macroeconomics: Macroeconomics may be defined as that

branch of economic analysis which studies behaviour of not one

particular unit, but of all the units combined together.

Macroeconomics is a study in aggregates. Hence it is often called

Aggregative Economics. It is, indeed, a realistic method of

economic analysis, though it is complicated and involves the use of

higher mathematics. In this method, we study how the equilibrium in

the economy is reached consequent upon changes in the

macro-variables and aggregates. The publication of Keynes' General

Theory, in 1936, gave a strong impetus to the growth and

development of modern macroeconomics.

3. International economics: As the countries of the

modern world are realising the significance of trade with other

countries, the role of international economics is getting more and

more significant

nowadays.

4. Public finance: The great depression of the 1930s led

to the realization of the role of government in stabilising the

economic growth besides other objectives like growth,

redistribution of income, etc. Therefore, a full branch of

economics known as Public Finance or the fiscal economics has

emerged to analyse the role of government in the economy. Earlier

the classical economists believed in the laissez

faire economy ruling out role of the government in economic

issues.

5. Development economics: As after the second world war

many countries got freedom from the colonial rule, their economics

required different treatment for growth and development. This

branch

developed as development economics.

6. Health economics: A new realisation has emerged from

human development for economic growth. Therefore, branches like

health economics are gaining momentum. Similarly, educational

economics

is also coming up.

7. Environmental economics: Unchecked emphasis on

economic growth without caring for natural resources and ecological

balance, now, economic growth is facing a new challenge from the

environmental side. Therefore, Environmental Economics has emerged

as one of the major branches of economics that is considered

significant for sustainable development.

8. Urban and rural economics: Role of location is quite

important for economic attainments. There is also much debate on

urban-rural divide. Therefore, economists have realised that there

should be specific focus on urban areas and rural areas. Therefore,

there is expansion of branches like urban economics and rural

economics. Similarly, regional economics is also being emphasised

to meet the challenge of geographical inequalities.

There are many other branches of economics that form the scope

of economics. There are welfare economics, monetary economics,

energy economics, transport economics, demography, labour

economics, agricultural economics, gender economics, economic

planning, economics of infrastructure, etc.

The branches of economics are Microeconomics and

Macroeconomics.

Microeconomics - ("small" economics), which examines the

economic behavior of agents (including individuals and firms)

and;

Macroeconomics - ("big" economics), addressing issues of

unemployment, inflation, monetary and fiscal policy for an entire

economy.


Copyright © 2020 Multiply Media, LLC. All Rights Reserved. The material on this site can not be reproduced, distributed, transmitted, cached or otherwise used, except with prior written permission of Multiply.