Economics is the study of how people behave and make decisions when there are limitations on products, goods and resources. After taking a certain number of preparatory courses at the undergraduate level, students who major in economics will often have the option of choosing a particular concentration within the field. Universities typically offer courses in a variety of areas of study to give students a broad introduction to the field.
Environmental economics is an important area of study because it examines the economics of natural resources such as farming, fisheries and forests. Depending on the university and the department, environmental economics may be known as agricultural economics or natural resources economics and cover topics such as public policies regarding mineral resources, energy, water and clean air.
Another important area of study is developmental economics, also known as economic development. This field analyzes how economies develop, typically focusing on the growth and development of Third World countries. However, less developed nations are not the only focus of this area of study. Developmental economics also focuses on the development of other types of smaller economies, such as neighborhoods, villages, towns, cities, regions and states.
Business or managerial economics is one of the more applied areas of study within economics. It analyzes how companies and firms behave and make decisions by looking at factors that result in profit maximization, price setting, production goals and the role of incentives. Depending on the university, this area of concentration is sometimes offered by or connected to the school of business.
Macroeconomics and monetary economics, also known as monetary and macroeconomic theory, is the study of the economy as a whole. This area of study analyzes the nation’s production, inflation, income, interest rates and monetary policies. Because of its focus on analyzing qualitative and quantitative data, such as applying econometric methods to estimate and validate macroeconomic models, this field of study is very mathematically rigorous.
Other Fields of Study
Economics also has many other areas of study. Financial economics focuses on valuation of assets and capital structure of firms and companies. Labor economics focuses on the decision-making and behaviors of employees and the relationships between employers and employees. Economic history focuses on the history of the field by looking at topics such as factors in the Industrial Revolution and market emergence. International economics focuses on the relationships among countries and globalization.
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