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.Know More
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 about Economics
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 >
According to the Business Insider, economics is like a science because economists use an empirical or scientific method to solve problems. In addition, theories in economics can be tested. The Business Insider adds that economists have access to big data, which allows them to isolate and establish the causal relationships of a scientific inquiry.Full Answer >
Screening in economic theory refers to the ways in which buyers filter out false information from sellers, retaining only what is true. Screening is especially necessary in contemporary markets, since products are increasingly complex for the average consumer. Non-specialist buyers of cars and other technologies rely far more on the information provided by sellers than they would in an agricultural market, for instance, where the value of products is easily assessed.Full Answer >