Explore Economics

What is Economics?

Economics is the study of the creation of resources and how they are consumed and transferred. The economy refers to how a country or area's wealth and resources produce, consume, and manage assets. The practices of economics help evaluate, improve and sustain the resources available.

An economist is a person who spends time evaluating the relationship between the available resources and how the different entities relate. They analyze supply and demand, risk factors, and resource value to help guide future policies on interest rates, tax laws, employment programs, international trade agreements, etc.

Many aspects of studying economics fall into two main categories: macroeconomics and microeconomics. While these categories operate under the same principles, they address economics differently.

Microeconomics analyzes economics from an individual, household, or business standpoint. It looks at how these different entities operate with increases and decreases in resources and prices. Often, microeconomics experts work to understand how and why resources are valued, the supply and demand system, and how risk plays a part in financial decision-making. Analysis of microeconomics can be used to understand and anticipate the decision-making process of these groups.

The branch of macroeconomics studies the choices and practices of the whole economy, while concentrating on elements such as foreign trade, unemployment rates, inflation, interest rates, recessions, booms, etc. Macroeconomics utilizes the economic cycle (expansion, peak, contraction, and trough) to give insight on making investments.