Economics

Economics deals with decisions related to production, consumption, and distribution of goods and services. It the study of the scarcity of resources and everyday choices that we make.
To understand more about Economics, let us understand the different types of Economics and its uses in everyday life.

Types of Economics

Economics varies from the study of one of a few units to the study of a large number of units. It is broadly categorized into two main categories: microeconomics and macroeconomics.

Microeconomics

The term Micro emerged from the Greek word mikro, meaning small. It is the study of individual firms and consumers, and about how individual actors make decisions. This subfield of economics has to do with Supply and Demand. It describes the way, demand and supply interact in various markets and determine the price.
Microeconomics makes it clear that how our choices affect the economy. With the study of this subject, you could easily understand the real-life market situation. It will help you understand how prices of goods and determined, how consumers decide what to consume, how producers decide how much to produce, and so on.

Macroeconomics

It is another major sub-field of Economics. The branch of economics that studies the overall economy or the economy as a whole. It describes the market system behavior on a large scale. It studies the overall economy-wide phenomenon.
To add to that- the rate of economic growth, National Income, Gross Domestic Product (GDP), changes in unemployment, and likewise is studied under macroeconomics. It focuses on aggregate or overall changes in the economy.

Economics in everyday life

Everyone is affected in some way or the other by economics as economics is all around us. For instance, mass unemployment or too much inflation impacts society giving rise to make new or amend existing policies. The policies are being studied in economics and the policymakers are well versed with economic concepts.
Inflation, unemployment, economic growth are the buzzwords that we hear now and then. These are some of the macroeconomic trends that relate to our everyday lives.
We are faced with choices in our daily lives. When choosing option 1, we sometimes have to let go of option 2. This study of making choices whether from consumers’ or producers’ point of view is also studied under economics. The study of choice and preference is the guiding principle in making consumption, production, and distribution decisions in the economy.
Given all that has been said, economics affects our daily lives in subtle ways and in most obvious ways too.

Benefits of Studying Economics

Economics helps people to understand the world around them. It helps us understand the business, markets, and people around us. It enables us to respond better at the time of opportunities and problems in the economy.
In an ever-changing world, Economics would be a great choice. It enables us to understand the ongoing economic situations better and adjust our consumption, savings, investment decisions accordingly.
It would help in a variety of career paths. Economics enhances your problem-solving and analytical skills. One could pursue a career in law, finance, public administration, politics, entrepreneurship, journalism, and many such vast options.
Economics imparts clear, logical thinking and reasoning as well. It would help you do well professionally and personally as well. Studying economics can be a valuable complement to most of the other subjects. It would help enhance the value of other subjects.