The Branches of Economics

Microeconomics

looks at the actual act of making a decision— looking at why agents do things. focuses on markets
analogy: environment but focusing on individual trees

Macroeconomics

looks at the larger effect of the millions of individual decisions that are made
ex: inflation

industrial organization

looks at the structure and performance of industries and firms within an economy

labor economics

deals with the factors that determine wage rates

public economics

examines the role of government in the economy. What are the economic functions of government

international economics two parts:

international trade and international fincance

international trade

studies the trade flows among countries and international financial institutions. what are the implications of tariffs and quotas?

international finance

looks at the flow of assets and money between nations as well as what determines the exchange rate between nations

urban and regional economics

studies the spatial arrangement of economic activity. Why do we have cities? why do poor people live in cities? why do certain neighborhoods decline while others prosper?

comparative economic systerms

examines the different ways that alternative economic systems function. what are the advantages and disadvantages of different systems? how do capitalist economies differ from socialist economies?

economic development

focuses on the problems of poor or developing countries. what can be done to promote development in these countries? how do countries grow?

Econometrics

uses statistics to test hypotheses and theories. Very important in economics. Almost all fields use econometrics to some extent.

Economic History

traces the development of the modern economy. what caused the industrial revolution

Law and Economics

analyzes the economic function of legal rules and institutions. how does the law change the behavior of businesses and individuals? what are the economic costs of crime?

the history of economic thought

studies the development of economic ideas over time

behavioral economics

looks at why people do stuff from a more physiological angle and often focuses on mistakes in logic or decision-making

neuroeconomics

looks at what the brain does as we make economic decisions