Economics
Candlefocus EditorAt its core, economics is about understanding and using the principles of resource allocation. To do this, economists look at how a variety of actors, from household decisions to governments and international markets, produce, distribute and consume goods and services. This can mean analyzing how people make decisions about spending, the impact of taxes, or the price and availability of gas.
The two main branches of economics are microeconomics and macroeconomics. Microeconomics looks at the behavior of individuals and businesses and how those decisions affect prices, production, and industry. Macroeconomics, meanwhile, looks at the economy as a whole. It looks at the effect that taxes, interest rates, and government policies have on the country's economic health.
In addition to studying individuals, firms and markets, economists also use economic indicators to monitor economic performance, such as the Gross Domestic Product (GDP) and the Consumer Price Index (CPI). GDP measures the value of all goods and services produced within the country, while the Consumer Price Index tracks the prices of certain goods and services to measure the cost of living.
Economics is an ever-evolving field, with plenty of new developments continually being added. Technological advancements, global trade and politics all have an effect on the economy and economists must keep up to date and be able to adapt to changing conditions. By studying economics, people gain a greater understanding of our modern economy, and are better able to anticipate and manage the economic policies of our time.