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Economics

From Wikipedia, the free encyclopedia


This article is about the social science. For other uses, see Economics
(disambiguation) and Economic Theory (journal).
For a topical guide to this subject, see Outline of economics.

Countries by real GDP growth rate in 2016. Countries in red were in recession.

Economics

A supply and demand diagram, illustrating


the effects of an increase in demand

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Glossary

 Glossary of economics

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Economics (/ɛkəˈnɒmɪks, iːkə-/)[1][2][3] is the social science that studies the production, distribution,
and consumption of goods and services.[4]
Economics focuses on the behaviour and interactions of economic agents and
how economies work. Microeconomicsanalyzes basic elements in the economy, including individual
agents and markets, their interactions, and the outcomes of interactions. Individual agents may
include, for example, households, firms, buyers, and sellers. Macroeconomicsanalyzes the entire
economy (meaning aggregated production, consumption, savings, and investment) and issues
affecting it, including unemployment of resources (labour, capital, and land), inflation, economic
growth, and the public policies that address these issues (monetary, fiscal, and other policies).
See glossary of economics.
Other broad distinctions within economics include those between positive economics, describing
"what is", and normative economics, advocating "what ought to be"; between economic theory
and applied economics; between rational and behavioural economics; and between mainstream
economics and heterodox economics.[5]

Contents
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 1Term
 2Definitions

 3Microeconomics

o 3.1Markets

o 3.2Production, cost, and efficiency

o 3.3Specialization

o 3.4Supply and demand

o 3.5Firms

o 3.6Uncertainty and game theory

o 3.7Market failure

o 3.8Public sector

 4Macroeconomics

o 4.1Growth

o 4.2Business cycle

o 4.3Unemployment

o 4.4Inflation and monetary policy

o 4.5Fiscal policy

 5International economics

 6Development economics

 7Economic systems

 8Practice
o 8.1Theory

o 8.2Empirical investigation

o 8.3Profession

 9Related subjects

 10History

o 10.1Classical political economy

o 10.2Marxism

o 10.3Neoclassical economics

o 10.4Keynesian economics

o 10.5Chicago school of economics

o 10.6Other schools and approaches

 11Agreements

 12Criticisms

o 12.1General criticisms

o 12.2Criticisms of assumptions

 13See also

 14Notes

 15References

 16Further reading

 17External links

Term
The discipline was renamed in the late 19th century primarily due to Alfred Marshall from "political
economy" to "economics" as a shorter term for "economic science". At that time, it became more
open to rigorous thinking and made increased use of mathematics, which helped support efforts to
have it accepted as a science and as a separate discipline outside of political science and other
social sciences.[a][7][8][9] The ultimate goal of economics is to improve the living conditions of people in
their everyday life.[10]
Economic analysis can be applied throughout society, in business, finance, health care, and
government. Economic analysis is sometimes also applied to such diverse subjects as
crime, education,[11] the family, law, politics, religion,[12] social institutions, war,[13] science,[14] and the
environment.[15]

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