The American Economic Association states that the study of economics is primarily concerned with how people use resources, such as people's time and talent, land, equipment, products and services. Economists and students of economics study land, labor and investments of income, money, production, taxes and government spending. In particular, economics studies the idea of choice and how people and companies must make choices due to limited resources.Continue Reading
The study of economics is generally broken down into microeconomics and macroeconomics. According to Mint.com, microeconomics is concerned with the economy in regards to individual people's behavior and that of companies. It looks at consumer demand and how that affects prices and production of goods and services. Microeconomics students also study how specific industries are affected by the choices individuals make. This branch of economics always deals with the economy on a personal level.
Mint.com explains macroeconomics as the "big picture" study of the economy. Specific topics studied in macroeconomics include unemployment rates, gross domestic product, inflation and overall prices. Macroeconomics students study the actions of a country's central bank, also known collectively as the monetary policy, such as interest rates and money supply. Knowing this information about the economy helps companies and the government make predictions about the future.Learn more about Economics