Economics is a science that studies the production, distribution, consumption, and allocation of goods and services. Economics is also the study of the allocation of scarce resources – land, labor, capital, goods, and services to determine the most efficient allocation of those resources in a society. In simple terms, economics studies how people and institutions to coordinate activities to meet their ends.
The discipline of economics is the only major field of study that relies on mathematics for its solutions. Economics is unique among the other sciences in that it is the only one that makes use of principles from mathematics such as geometric reasoning, probability, statistics, etc. to solve problems. It uses the same process of calculation to analyze a system as does any physical laboratory.
One of the most important areas of economics that is considered in today’s modern economy is business, or market. Market economies are characterized by plenty of interaction between producers and consumers, as well as between various organizations within the market. The key to a firm’s existence is its ability to efficiently allocate resources to produce goods and services at the greatest possible cost to the consumers. Market economies offer a solid foundation for global growth, with the ability for countries to specialize in certain goods that can be produced both domestically and internationally.
One of the most important areas of economics that is often ignored is microeconomics, the study of minute aspects of market activity. Microeconomics has three distinct characteristics. First, it operates with a large degree of random sampling. Unlike macroeconomics which makes use of statistics to identify patterns and trends, microeconomics attempts to observe and measure economic behavior by analyzing the actions of very small numbers of entities. In short, microeconomics seeks to explain phenomena by examining the actions of very small groups of economically active people.
Microeconomics also differs from economic theory in that it does not attempt to provide an accurate forecast of how any given situation will affect the larger system. The second distinguishing feature of microeconomics is that it attempts to describe real economic behavior by means of economic tools that have little or no relationship with quantity, value, or date. Thus, the theory of the state of a business is actually a description of the internal conditions of a business, not the overall state of that business in relation to other businesses in that industry. Microeconomics therefore seeks to understand how an economy changes over time, rather than how it fluctuates from season to season. In short, it is more descriptive than prescriptive.
Economics may be viewed as a natural field that evolved out of or parallel to the rest of human enterprise. However, one can advance an advanced degree in economics through programs offered by many universities and colleges today. A four-year economics degree program at the University of Maryland offers students the opportunity to participate in advanced classes that concentrate on cutting-edge research, experimentation, analysis, and measurement methods that are relevant to economics. Students pursuing such a degree may also elect to specialize in a specific area of economics.
As with all branches of economics, microeconomics has its own terminology and various statistical techniques. Microeconomics courses are typically taught in the same manner as those required of other students in a business management degree program. All economic concepts are explained with both personal and institutional factors being taken into account. As such, an economics degree program includes a lot of reading about how markets operate, what factors influence the state of economies as a whole, and how changes in particular industries affect the national economy.
The field of microeconomics has opened up many doors for recent graduates looking for a more specialized degree. Those looking for jobs and those wishing to start their own business have a field that is ripe with opportunities. For students who want a more abstract understanding of economics, however, an economics degree is not for them; they should instead pursue a bachelor’s degree in business.