Economics As An Area Of Study And Research

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Economics as an area of study and research borrows from the social and scientific aspects of life. The interplay between the two principles helps in the formulation of ideals that influence distribution, production, and consumption. Right from the ancient times understanding and definition of the term dwelled on the issue of political economy. Nonetheless, developments by made scholars in the sector saw the formulation of new meanings that separated economics from other political and social sciences. Marshall (2004) noted that the essence of economics is to study the interaction and behavior of various economic factors that determine how economies work (Marshall 2004).
Understanding of economics calls for the division of the subject into two main branches. The areas are microeconomics and macroeconomics. Microeconomics is the basic form of economics in the society. It examines the roles of households, individual consumers, and markets in a given region. On the other hand, macroeconomics examines the factors that affect the larger components of the economy. It focuses on issues such as national investment, consumption, production, and savings. It further analyzes other factors that affect the performance of the components such as unemployment, and fiscal and monetary policies (Taussig 2013).
As one of the major sub categories, microeconomics looks at the interaction of factors that create a
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