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Economics can be defined in few different ways. It’s the study of scarcity, how people use resources and respond to incentive, or study of decision-making. It often involves topic like wealth and finance, but it’s not all about money. Economics is  broad discipline that helps us understand historical trends, interpret today’s headline, and predict the coming years.


Microeconomics studies how individual consumers and firms make decisions to allocate resources. Whether a single person, a household, or a business, economists may analyze how these entities respond to changes in price and why they demand what they do at particular price levels.

Microeconomics analyzes how and why goods are valued differently, how individuals make financial decisions, and how they trade, coordinate, and cooperate.

Within the dynamics of supply and demand, the costs of producing goods and services, and how labor is divided and allocated, microeconomics studies how businesses organize and how individuals approach uncertainty and risk in their decision-making.


Macroeconomics is branch of economics that studies behavior and performance of an economy as whole. Its primary focus is recurrent economic cycle and broad economic growth and development.

It focuses on foreign trade, government fiscal and monetary policy, unemployment rate, the level of inflation, interest rate, the growth of total manufacture output, and business cycles that result in expansions, explosions, recession, and depression.

Using total indicators, economists use macroeconomic models to help formulate economic policies and strategies.

What Is a Command Economy?

A command economy is one in which a government determines production, investment, prices, and incomes centrally. A communist society has a command economy.

What Is Behavioral Economics?

Behavioral economics combines psychology, judgment, decision-making, and economics to understand human behavior.

Who Has Influenced the Study of Economics in the 21st Century?

Since 2000, several economists have won the Nobel Prize in economics, including David Card for his contributions to labor economics, Angus Deaton for his study of consumption, poverty, and welfare, and Paul Krugman for his analysis of trade patterns.

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