The two major divisions of economics are macroeconomics and microeconomics. Macroeconomics is the branch of economics that deals with the behavior of an entire community or country, and microeconomics is the branch of economics that deals with the economic behavior of a specific segment.Continue Reading
Macroeconomics is the economics of production levels, the gross national product of a country or the unemployment rate of a city or nation.
Microeconomics is more specific. It deals with consumers and consumer spending, specific business firms, prices of products and the effect of those prices on the market.
Breaking economics down further shows that there are even smaller divisions. Production, consumption, distribution, exchange and public finance are all smaller divisions of economics.
Production relates to the manufacturing process of goods and how it relates to the utilization of products and services by consumers. Distribution relates to how the produced goods are delivered to consumers and exchange delves into the way products are transferred from one person to another. Public finance looks at how governments implement financial policies like taxation, and how that implementation affects the consumer.
Breaking down economics even further, there is the land, labor, capital, entrepreneur and foreign exchange, all of which are used in the production in economics.Learn more about Economics
The study of macroeconomics helps create an overall idea of the state of a nation's economy. As the world is shifting toward a global economy, this could be very beneficial in devising ways for stabilizing troubled economies.Full Answer >
The selling price of copper is influenced largely by macroeconomics, which includes large-scale factors. For instance, one macroeconomic factor is China. It consumes 40 percent of all the world's copper, affecting the prices.Full Answer >
Using GDP in macroeconomics gives the advantage of easy calculation, because most GDP calculations use the same methodology and it correlates with development measures such as literacy levels. Disadvantages of using GDP include that it excludes the underground economy and ignores the value of household labor.Full Answer >
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.Full Answer >