Keoni Buenavista
Date: 05/18/2022
Prompt: State and describe some of the different fields of study within economics, why they are important, and what can be found in them.
As a social science, economics is a field of study that looks into the interworkings of the consumption of goods and services, distribution, and production. Within the study of economics, there are other fields some of which are: Microeconomics, macroeconomics, applied economics, and normative economics. All of these fields specialize in a sector of study that relates to the core of production, distribution, and consumption of goods and services within a certain region.
Microeconomics essentially looks at how businesses and individuals behave when it comes to allocating materials that are scarce and how these different entities interact. The main focus of Microeconomics is on the study of individual markets, sectors, or industries as opposed to the national economy as a whole, which is emphasized in macroeconomics. A major objective of microeconomics the effects of what happens in markets on relative prices among goods and services.
On the other hand, macroeconomics observes and studies the structure, performance, and behavior of an economy, along with the decisions that are made, on a global scale. Additionally, Macroeconomists study topics such as Gross Domestic Product, unemployment, national income, price increases, output, consumption, inflation, saving, investment, energy, international trade, and international finance. With both fields relating to microeconomics and Macroeconomics, they have different models that help to represent research found about a certain demographic or another insight into causes and effects within an economy.
Another field of study in economics that differs from traditional economical studies is Normative economics. Normative economics has an emphasis on the idea of equality in an economy and what things should be regarding the goals of public policy or the outcome of what happens in an economy. For example, this form of studying an economy looks at what is practical or makes sense such as the statement that the price of a gallon of milk should be a certain amount to give dairy farmers he higher standard of living, and so they can further invest in their farm. From this statement, increasing the milk price would make sense, because of what it can do to help another entity.
The last field of applied economics, has to o with actually applying theories made in the study of economics to specific settings. These specific settings may be applied to different sectors of the workforce or an economy such as business, industry, agriculture, engineering, financial, health, and more. With economic development in mind, this form of economic study functions as a way to improve the quality of business practices and policy-making across nations.
In conclusion, economics along with its specialized fields of study look at certain parts of how an economy operates and how certain ideas can lead to different effects. To elaborate, the cause could be the government regulation on certain products in an economy which has the effect of less economic growth in that sector. Generally, these fields of study help others to understand how the economy works, how others are affected by certain actions, and how to prevent certain events from happening that could be catastrophic.