Kinds of Economics

There are two main categories within the study of economics. Microeconomic theory studies individual behavior in the allocation of resources. Macroeconomic theory studies the structure and performance of the entire economy. Within each of these branches there are specializations. Some of the specializations fall solely within one branch, while others overlap the two branches.
  1. Behavioral Economics

    • Behavioral economics studies the individual decision-making process within the economy as it relates to various social sciences. It uses psychological and anthropological research to expand upon economic concepts. This is part of the microeconomic branch of economics.

    Corporate Finance

    • Corporate finance studies the decisions and effects of corporations on the entire economy. This includes the study of the relationships between corporations, research and development, and the role of banks have on corporate decision making. This is part of the macroeconomic branch of economics.

    Defense and Peace Economics

    • Defense and peace economics studies economic efficiencies in military alliances, military branches in developing nations, economic sanctions of countries, and the effect of military decisions on employment. This is part of the macroeconomic branch.

    Development Economics

    • Development economics studies the long-run economic conditions of less-developed nations. This is part of the macroeconomic branch.

    Environment and Energy Economics

    • Environment and energy economics studies the regulation of energy and the effect of pollution on local, regional and global economies. This is part of the macroeconomic branch.

    Health Economics

    • Health economics studies the effects of substance abuse, obesity, and health care on individual decision making as well as local economies. This is part of the microeconomic branch.

    Industrial Organization Economics

    • Industrial organization economics studies business behavior and government regulation of businesses. This includes competition and pricing behavior in industries. Industrial organization economics is both microeconomics and macroeconomics.

    International Trade

    • International trade economics studies patterns of international trade, foreign direct investment, import and export policies, and the effect of these policies on countries. This is part of the macroeconomic branch.

    Labor Economics

    • Labor economics studies issues of employment, compensation, labor unions and benefits relating to employees. This is part of the microeconomic branch.

    Monetary Economics

    • Monetary economics studies monetary policy including prices, exchanges rates, and wages in countries. This is part of the macroeconomic branch.

    Political Economics

    • Political economics studies the interrelationship between political institutions and actors and economic policies. This is both macroeconomics and microeconomics.

    Urban Economics

    • Urban economics studies the causes and consequences of metropolitan density, local tax issues, local public finance, urban poverty, racial relations, crime, and transportation. This is both macroeconomics and microeconomics.

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