Economics is a subject all students are required to take in high school and beyond. It’s one of the most important concepts taught to young adults, and one that many individuals find they have to relearn early in life. However, not everyone is taught how to effectively deal with economic problems. In fact, when it comes to economic and financial news, there is very little that most people are able to understand.
For those that are fortunate enough to have received a basic education in economics, it’s likely they have at least an inkling of what economics is. The difficulty lies in being able to use this knowledge in order to solve real-world problems. Economics is basically the study of how people make choices despite the presence of scarcity. These might be personal decisions, household decisions, business choices or social choices.
There are many different schools of thought when it comes to economics. Two broad types are formalists who believe that economics is about analyzing the workings of the market, as opposed to being primarily concerned with ideas of how people should make choices. Moderationists believe that economics has an intrinsic interest in understanding how markets operate. Ultimately, there are two schools of thought in economics – those that believe it is primarily about labor and those that believe it is primarily about capital.
The first section of the first part of the first semester of college economics class focuses on the theories and concepts of economics. This section will teach students about the nature of economics, including how to read economic data, how to construct economic models, how to analyze the effects of changes in prices and quantities of certain goods and services on the economy, and how to measure the level of economic activity. Some of the topics you may expect to discuss in this first class include demand analysis, production, distribution, marketing, entrepreneurship, and price determination.
The second segment of the economics class deals with the methods of economists as professionals who make professional recommendations. The topic of this course may include how to decide which economic theory is most appropriate for a particular situation, such as economic theory of demand or production. Some of the topics you will cover include finding the elasticity of demand, analyzing production and distribution, identifying sources of economic growth, determining the distribution of income and wealth, and pricing. In order to learn these techniques, you will be taught to use the state of the economy, the scope of macroeconomics, microeconomics, international trade, and political economy. These are just a few of the topics you can expect to cover in this class.
Part of the curriculum of your degree program in economics should include a study of macroeconomics, which consists of how economics affects the world as a whole. Most students are familiar with macroeconomics as the portion of economics that studies global trade and interest rates. Microeconomics, on the other hand, is more concerned with the domestic level of an economy. As with macroeconomics, most students are familiar with the concepts of microeconomics, such as microeconomics, money, markets, and government.
The third segment of your study in economics is the microeconomics specialization. In this specialization, students explore the micro aspects of how people and businesses interact and produce their goods and services. This could include such examples as how households select which widgets to buy, how consumers select and evaluate which brands to choose, how producers choose which products to produce, and how governments allocate resources in terms of the production of goods and services. Unlike the macroeconomics specialization, this course does not usually examine goods and services at the national level. Students in this class are usually expected to have prior knowledge of how individuals and corporations produce and consume goods and services at the neighborhood, regional, and national level.
In order to obtain a bachelor’s degree in economics, you must first complete coursework on the general principles of economics, such as microeconomics and macroeconomics. After graduation, you must take general courses in business, such as management, marketing, and economics. You may want to consider an advanced degree in economics, which will require additional classes in finance and microeconomics. The American Economic Association offers graduate degrees in business as well as advanced degrees in economics.