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What is economics?

Economics is a social science concerned with the factors that determine the production, distribution and consumption of goods and services. It studies how individuals (such as families or firms) and societies make choices on allocating limited resources to satisfy their wants, needs and greeds. Thus, political economy or economic science was so named because it was originally intended to discover what role politics plays in the economy. Today, economists use tools from mathematics, statistics, and computer science to analyze industrial organizations, banks, financial markets and almost every other facet of human society.

Branches of Economics For Help With Economics Homework at Tutlance

There are many branches of economics that you can ask for economics homework assistance at Tutlance. These include:


Macroeconomics studies national or regional output (GDP) as well as interest rates, inflation, unemployment and economic growth. It focuses on aggregate variables like national income, employment level, inflation rate etc...


Microeconomics studies decision-making by individuals and firms to understand how prices are determined. It uses game theory models to describe interactions among people who have incomplete control over their choices because they take place under conditions of scarcity. For example, it analyzes how individuals make decisions about what quantity of a good to purchase given that there are constraints on their income.

Development economics:

Development Economics studies how economic changes affect people in developing countries or poor areas. Development economics is also known as "growth economics" and it was founded by Alexander Gerschenkron. He stressed that in less developed countries these processes were different from the ones found in more advanced economies, so generalizing assumptions about economic development would not be appropriate.

Business Economics:

Business economics studies how companies organize themselves to maximize profits. For instance through management techniques or marketing methods. This subfield considers decisions regarding inputs (materials), processes (manufacturing), outputs (goods) and distribution developed by business owners and managers. It aims at finding optimal ways for organising production and producing assets with cheaper yet better quality products. This means focusing on efficiency without regard to other social considerations.

Competition Economics:

Competition Economics can be seen as a response to the monopoly power of large corporations when they can control prices. This discipline studies how competitors succeed when consumers have multiple options available to them, thus analyzing current business strategies and rewarding organizational structures.

Financial Economics:

Financial Economics deals with aspects like the determination of the value of stocks and shares, options, mortgage loans etc. The finance sector is becoming increasingly important in today's economy, which makes this branch to be an interesting topic for study for many college students.

Game theory:

Game theory is a branch of applied mathematics which analyzes the interactions between strategic actors. It assumes that they have incomplete information and apply different forms of reasoning to anticipate their opponent's actions. A game is a situation where two or more people choose strategies from a set of available options to maximize gains and minimize losses.


The goal of econometrics is to use mathematics and statistics to solve real-life economic problems. As such, it is sometimes called applied economics. It uses econometric methods to time series or cross-sectional data to estimate models and test hypotheses about the relationship between economic phenomena.

Behavioural economics:

Behavioural economics is an interdisciplinary field based on psychology and economics. It aims to explain economic behaviour in terms of the psychological traits of individuals rather than theories or models.

Public economics:

Public economics is the application of microeconomic theory to government policy. It looks at welfare distribution, tax incidence, stabilization policy, and positive and normative analysis in public finance.

Economic geography:

Economic geography is a branch that examines relationships among countries and regions, focusing on the distribution of an economy's activities across space (land). For example, economic geography can study how cities are formed and why people choose to live in certain areas. It also considers whether regions develop independently or dependently of each other as well as the interdependence between various economies.

Environmental Economics:

Environmental economics deals with the link between economics and caring for the environment. It emphasizes green growth, doing less environmental damage and using natural resources efficiently. By studying these issues we aim at finding ways of overcoming our current environmental problems such as pollution, depletion of natural resources, biodiversity loss etc.

International Economics:

International economics is a branch of economics that studies the factors that determine, for instance, the demand and supply of goods and services in different countries. For example, a country's international trade balance depends on its national saving level, which in turn reflects its investment level, which implies a certain amount of foreign assets.

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Economic systems, models and theories

The study of economic systems encompasses how knowledge is created as well as distributed. In this field, an economic system can be seen as a functioning social system which includes at least one market mechanism.

A variety of such theories exist, for instance: Keynesian Economics, Monetarism, Supply-side economics, Classical economics, Marxism, and Institutional economics.

Elements of an economy can include commodities, natural resources, capital goods, financial institutions and human resources.

Why study economics in college?

Economics is a social science that studies people's economic behaviour. Economics helps us understand the way people make decisions about buying, selling, and investing. That means it can help you to make better decisions about your money. Understanding economics helps us to be more informed citizens.

Studying economics means mastering the tools of economic analysis which will equip students for careers in business, finance, government or policy making, law, public administration and many other fields.

You may have been told that economics is the study of money and banking, but don't be fooled it's much more than that.

Economics explores questions like:

  • What determines how many jobs there will be?
  • Why do people save some of their income and spend the rest?
  • How should we measure economic progress over time?

Economics has several branches including:

  • Microeconomics looks at the behaviour of individuals and firms.
  • Macroeconomics, which looks at economy-wide events such as recessions or growth.
  • International economics deals with trade between countries.
  • Development economics explores why some nations are rich and others are poor.
  • Environmental economics looks at how we can best protect our natural resources.

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