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.
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
When brainstorming topics for a macroeconomics paper, good topics include exploring the housing crisis, foreign trade, credit standards, the push for frugality, cigarette and alcohol taxes, corporate subsidies, auto industry sales and property taxes. Additional paper topics for a macroeconomics course also include analyzing and comparing economic policies from one state to another and economic changes throughout the course of a decade.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 >
Economics and economic education are important for providing people with valuable insight into how foreign and domestic markets operate, which allows them to make reasoned and rational choices for short-term and long-term financial benefits. Studying economics also allows people to learn how to manage and most effectively use scare and finite resources such as time and money. Studying economics equips people with varying levels of financial literacy, which allows them to effectively manage their own finances and even advise others in financial management and planning, too.Full Answer >
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.Full Answer >