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The study of economics examines how products and services are produced, distributed, and consumed. It also incorporates the idea of supply and demand for products and services. It evaluates how consumers behave. It has to do with how the government effectively and efficiently uses scarce resources to meet public demand and fulfill citizens' needs and desires. Economics is about understanding difficult ideas like opportunity cost, elasticity, and demand rather than about interpreting graphs and charts.
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Economic analysis can be broadly classified into two areas: macroeconomics and microeconomics. To begin with, let us examine both in brief:
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A field of study called business economics, sometimes referred to as managerial economics, uses quantitative techniques and economic theory to analyze corporate or organizational decision-making.
The study of the financial implications of labor laws and regulations is known as labor law economics. Labor laws are intended to regulate the relationship between employers and employees to ensure fair and equitable treatment in the workplace.
Econometrics is a field of study in economics that examines and measures the correlations between various economic variables by fusing statistical techniques with economic theory.
A subfield of mathematics and economics known as "game theory" examines the strategic exchanges that occur amongst logical decision-makers. Numerous disciplines, including computer science, biology, political science, and economics, heavily rely on game theory.
Financial economics is concerned with how resources are distributed over time, primarily within the framework of financial markets. The efficient market hypothesis, portfolio theory, risk management, and asset pricing are the main topics of study in financial economics.
Engineering economics, also known as engineering economy, is a branch of economics that applies economic principles to the analysis and evaluation of engineering projects and decisions.
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