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The Field of Economics

Economics is the study of scarcity and its implications for the use of resources, production of goods and services, growth of production and welfare over time, and a great variety of other complex issues of vital concern to society. If you want to understand wealth, poverty, growth, trade, money, jobs, income, depression, recession, prices and monopolies, and study what makes the world work from day to day, you will be fascinated by the complex field of economics!

Economics is a Social Science

Economics is generally regarded as a social science , which revolves around the relationships between individuals and societies. The central quest of economics is to determine the most logical and effective use of resources to meet private and social goals. Production and employment, investment and savings, health, money and the banking system, government policies on taxation and spending, international trade, industrial organization and regulation, urbanization, environmental issues and legal matters (such as the design and enforcement of property rights), are just a sampling of the concerns at the heart of the science of economics.

Micro- vs Macroeconomics

microandmacroeconomics

Microeconomics studies the implications of individual human action, and is key to a person's financial health. Personal resources are scarce, too! One can always use another rand, hour of time, or new skill. Achieving the most satisfactory allocation of one’s resources is crucial, and studying allocation problems improves one’s ability to make both daily and life-long decisions.
Macroeconomics studies how the economy behaves as a whole, including inflation, price levels, rate of growth, national income, gross domestic product and changes in employment rates. Some of the important questions American economists try to answer include: Why are some countries poor and others rich? What drives the high unemployment rates in South Africa? How do countries develop over time? What is the role of government in the economy? and What causes recessions and booms? From politicians to educators to journalists to urban planners, a thorough understanding of macroeconomics has a strong impact on leadership skills, decision-making and the ability to plan for a flourishing social future.

Why would one study Economics?

The simple answer is it affects our everyday lives through important areas such as tax, interest rates, wealth, and inflation. Economists provide the tools by which analysts can study the costs, benefits and effects of government policies in a range of areas that affect society.

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