Economics plays a vital role in making modern civilization function, so studying economics helps experts learn how to prevent problems. Studying economics also helps when running or managing a business. Economics is often viewed as a scientific field.Know More
In many ways, modern civilization is based on money. Countries need money to pay for the work they need done, and businesses and governments, which fuel economies, need money to make investments and provide goods and services. The study of economics prepared people for filling these roles, and its study covers a broad range of skills needed to work effectively.
Economics can seem deceptively simple at first, but it is a multidisciplinary field that requires a number of different skills. At the heart of economics is mathematics. Calculating how much a product or service is worth is important, and knowing how interest rates affect prices is critical as well. Economists need to rely on calculus for a wide range of problems.
However, many economists believe that the field is primarily about psychology and human behavior. Effective economic work requires knowing how people will react and learning what they are interested in purchasing. Economists can make accurate predictions in certain areas; in others, modern economics provides little guidance.Learn more about Economics
The two major branches of economics are microeconomics and macroeconomics. Microeconomics deals largely with the decision-making behavior of individual consumers and firms in markets, while macroeconomics focuses largely on the aggregated behavior of all consumers and firms in an economy.Full Answer >
Economics helps individuals and businesses to make informed decisions in different fields, including finance, governance, law, administration, finance among others. Typically, all people in the society are affected by economics in one way or another. It is not only important in education but also in making critical analysis in different situations.Full Answer >
Karl Marx's primary contribution to economics was a new framework that described economics as a struggle for power between different classes. His critiques of capitalism have been accepted by many economic theorists. His work has also spawned countless debates.Full Answer >
Adam Smith's main contributions to the field of economics were to lay the conceptual foundations for measuring a nation's wealth not by its gold or silver reserves but by its levels of production, and also to champion free-market capitalism as the most effective economic system. Smith was very much in favor of a laissez-faire approach to economies, wherein governments intervene as little as possible in business practices and trade.Full Answer >