In an introductory class in economics, students learn the basic concepts and techniques of economics and economic analysis. Some of the concepts an introductory class explain include price theory, inflation and demand. Students who have not taken algebra might need to take it as a prerequisite to understand the subjects covered in introductory economics.
Macroeconomics and microeconomics are the two fundamental levels of economic analysis; both are core classes for an economics degree. A course in macroeconomics teaches students concepts and analytic tools for studying economic activity as a whole. For example, macroeconomic analysis can address the question of how a change in policy will affect unemployment, such as how a tax on manufacturing might shift jobs overseas.
A microeconomics class looks at economics from the perspective of the individual consumer, small business and corporation. Basic concepts include the relationship between supply and demand; how businesses price goods, set wages, control costs and determine a level of output; and how individuals make economic decisions based on factors such as cost, income and benefits. This course teaches marginal utility, an analytical tool used by businesses to determine hiring, production and business expansion and closings.
A class in monetary theory examines the nature of currency control and production in an economy, among nations and in currency markets. This course might focus on the history of monetary production by governments and private banks, and examine the relationship between inflation or deflation and policies and actions that affect the supply of money in a country.
In an econometrics course, students learn statistics and mathematical models used to solve economic problems and make and determine economic predictions. Students can also learn the computational methods used to generate models for economic forecasting and analysis. Colleges may require multiple courses in statistics (such as Stats I and II) and courses in calculus as a prerequisite for students to study econometrics.
One of the fundamental assumptions of economics is rational choice theory, which holds that individuals enter into transactions in order to maximize benefits and minimize costs. Courses in behavioral economics explore this notion and alternative theories that attempt to explain individual preferences in economic decision making.
Topic-related classes in economics apply macro- and microeconomic levels of analysis to a particular level of economic development, industry or sector of the economy. Courses in the economics of developing countries look at what policies and conditions cause rapid economic growth. Classes centered on labor and labor theory might examine the economics of collective bargaining, labor law and employee-management relations. The economics of health care focuses on the factors and policies that drive costs, prohibit or spur growth and enable access to medical care.