What are the branches of economics?

Answer 1

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.