Understanding the Discipline of Economics
Why are some countries rich and some countries poor?
Why do women earn less than men?
How can data help us understand the world?
Why do we ignore information that could help us make better decisions?
What causes recessions?
Economics can help us answer these questions. Explore these short articleswhich illustrate what economics is and how it connects to our everyday lives.
Economics can be defined in a few different ways. It’s the study of scarcity, the study of how people use resources and respond to incentives, or the study of decision-making. It often involves topics like wealth and finance, but it’s not all about money. Economics is a broad discipline that helps us understandhistorical trends, interprettoday’s headlines, andmake predictionsabout the coming years.
Economics ranges from the very small to the very large. The study of individual decisions is calledmicroeconomics. The study of the economy as a whole is calledmacroeconomics. A microeconomist might focus onfamilies’ medical debt, whereas a macroeconomist might focus onsovereign debt.
What do economists do?
Economists have all kinds of jobs, such as professors, government advisors, consultants, and private sector employees. Using theoretical models or empirical data, theyevaluate programs, studyhuman behavior, andexplain social phenomena. And, their contributions inform everything from public policy to household decisions.
Economics intersects many disciplines. Its applications includehealth,gender, theenvironment,education, andimmigration. You can check out the field’s classification system (calledJEL codes) for more topics that economists study.
Why should I care about economics?
Economics affects everyone’s lives. Learning about economic concepts can help you to understand the news, make financial decisions, shape public policy, and see the world in a new way.
If you are a student, you might be wondering about how much economistsearnor how to apply tograduate school in economics. Explore these resourceson everything from learningmore about economicsto preparing for acareer in economics.For students interested in economics, explore more about economics at the American Economic Associationweb page. Browse resources pagesto learn more, and follow current economics topics onFacebook(AEAjournals) andTwitter(@AEAjournals).
Much more than finance, banking, business and government, a degree in economics is useful to all individuals and can lead to many interesting career choices. In the video, below, learn how four diverse individuals offer their insights on how a background in economics can be a tool for solving very human problems.
Source: American Economics Society
