What is Economics: Definition and 194 Discussions

Economics () is the social science that studies how people interact with value; in particular, the production, distribution, and consumption of goods and services.Economics focuses on the behaviour and interactions of economic agents and how economies work. Microeconomics analyzes 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. Macroeconomics analyzes the economy as a system where production, consumption, saving, and investment interact, and factors affecting it: employment of the resources of labour, capital, and land, currency inflation, economic growth, and public policies that have impact on these elements.
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.Economic analysis can be applied throughout society, in real estate, business, finance, health care, engineering
and government. Economic analysis is sometimes also applied to such diverse subjects as crime, education, the family, law, politics, religion, social institutions, war, science, and the environment.

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  1. P

    Economics books for the mathematician?

    I thinking about switching from math to econ for grad school, and was wondering how mathematical is upper level economics? I have trouble reading textbooks that don't follow the theorem->proof outline. I've found Mas-Colell gives a nice mathematical treatment of microeconomics. Any other...
  2. qspeechc

    Economics and Finance Books for a Beginner

    Hi everyone. I didn't put this in the Science Book Discussion because I don't really know if people would consider this science. Please move it if you think appropriate. Basically, I don't know anything about economics, finance and the related subjects. So much of the news is about...
  3. Q

    The Mathematical Method in Economics

    In the introduction to their book 'The Theory of Games and Economic Behaviour' von Neumann and Morgenstern consider the arguments against the use of mathematics in economics. One of the reasons they believe that previous applications of mathematics to economics had been unsuccessful was that...
  4. Shackleford

    Comparing the Difficulty of Undergraduate and Graduate Economics Programs

    I am a math major, physics minor senior. Generally speaking, how does the difficulty of an economics master's program compare to my undergrad? Well, I put this in the Social Sciences forum because I thought the people who post in there would have a better idea. This forum really just seems to...
  5. A

    Optimization in economics help

    Homework Statement A grocer usually buys 30 dozen pineapples per week. The cost per pinapple is $0.40 and they are sold at 0.78 a piece. As there is an abundant crop on May, the wholesaler offers a discount of $0.05 per pineapple for each additional order of 5 dozens (i.e. if the grocer buys 35...
  6. rcgldr

    News Why did trickle up economics work in Brazil?

    Saw a rerun of a 60 minutes episode a while back. To summarize one of the segments, about 7 years or so ago, the government of Brazil simply handed out money to the poor, which then spent that money on goods that started a self-sustain and growing economic cycle. Brazil has a fairly progressive...
  7. A

    Economics problem help please, recession in US how it effects canad

    Homework Statement a) The share of American spending on Canadian goods is about 80% of Canadian exports, which are themsevles equal to about 45% of GDP. What is the share of American spending on Canadian goods relative to Canadian GDP? b)Assume the multiplier in Canada is 2 and that a...
  8. BobG

    Are You Paying More for Dangerous Instructions in Your Book?

    Two books, same title, same subject, same author. Two radically different prices: https://www.amazon.com/dp/0764574086/?tag=pfamazon01-20 https://www.amazon.com/dp/0764554964/?tag=pfamazon01-20 The new edition is 16 pages shorter. What are the odds of a book being shortened by...
  9. M

    Engineering Economics Present Worth

    Homework Statement Three different alternatives shown below are being considered. Assume that alternatives X and Z are replaced at the end of their lives Alt. X Alt. Y Alt. Z Initial Cost - 6000 1000...
  10. M

    Economics and uniform series formula problems

    Homework Statement A Machine at a cost of $5,000 was purchased 3 years ago. It can be sold now for $3,000. If the machine is kept, the annual operating and maintenance costs will be $1,500. If it is kept and operated for next five years, determine the amount at time 0 (now) equivalent to the...
  11. J

    Rate of return with logs [engineering economics]

    Homework Statement In 1903, a Picasso painting was purchased for $600. The family of the original owner sold the painting in 1995 for $29,152,000. What rate of return (interest) did the family receive on the investment? Homework Equations Single Payment Compound Interest Formula...
  12. K

    Is Economics Really Just a Guess?

    Is economics ********? So my friend was telling me about economics and he told me it was a lot of BS. I remembered taking a economics course in high school and to be honest, the teacher didn't really seem sure as well. He said that economics can go either way. There's no right answer but all...
  13. A

    Mathematical Economics | Schools, Research & Experiences

    Hi: I've been interested since long time ago in Economics. Also, I've heard there are science majors working in Economics/Finance firms and I've read some of the threads on physicists turned "quants". I'm actually interested in using Physics & Mathematics to create economical models. I know...
  14. 6

    What is monotonic transformation? (economics)

    The textbook says it's a way of transforming a set of numbers into another set that preserves the order. But I don't understand what that means. Here are a few examples. The question was: do these functions represent a monotonic transformation. u = 2v - 13 (yes) u = -1/v2 (no) u =...
  15. W

    Maple How to Solve an Economics Equation in Maple with Variable Dependencies?

    Hey everyone, I have a problem to compute an equation i just read in an economics paper that was on my reading list. I simply cannot compute it in Maple and I have no further idea how to grasp it. Any suggestions are HIGHLY appreciated ;) http://21coe-glope.com/paper/21COE_WP3.pdf The...
  16. K

    Physics Chinese + Physics + Economics?

    Hi, So out of all the things I have studied, I really enjoy Physics, Econ, and Chinese. I feel like it should be a winning combination, and I was wondering what I can do with this? I would love to use my Chinese in some capacity, but I am always willing to give that up. I've been fumbling...
  17. T

    Derivatives in Economics problem

    Homework Statement The cost in dollars for producing x units is given by C(x) = 1.22x+ 2500 . The demand curve is given by p(x) = (60,000-x)/(10,000) A. Find the revenue function R(x) in simplest form. B. Find the marginal revenue function and the marginal revenue for selling 15000...
  18. S

    Schools Why are young scientists struggling to launch independent research careers?

    I go to a big old public university, so it's a bit different. Instate undergrads cost either about the same or more then their tuition, which is one of the reasons weeding courses are so popular and grade inflation isn't so bad, and out of state students are the big supplements. I had a friend...
  19. EnumaElish

    Joel Waldfogel is an economics prof. at Wharton School (UPenn.). His

    Joel Waldfogel is an economics prof. at Wharton School (UPenn.). His latest book is Scroogenomics. In it, he estimates that the recipient of a gift usually values the item less than its cost. By his measure, Christmastime gifts amount to $12 billion lost value ("deadweight loss") each year...
  20. f95toli

    Quantitative Financial Economics

    I am a bit curios about what quants really do and am therefore planning to buy a book about quantitative analysis (basically to read for fun). Can someone recommed a good book which describes "real world" techniques? Preferably something suitable for someone with the "usual" background (in...
  21. 2

    What are the popular/very useful mathematical models for principles in economics?

    I have a question for those who are cognisant with the study of economics. I've heard in economic classes they teach all sorts of mathematical models to describe/predict all the "laws" in the field, or at least approximations. I'm trying to hunt down the popular and useful economics...
  22. P

    Economics: money and banking

    How does each of the following affect a country's net capital outflow/net export/equilibrium exchange rate? 1. a rise in foreign interest rates 2. a fad for buying foreign goods 3. an announcement that a tax cut will occur in the future. 4. rising ethnic tensions that threaten to cause a...
  23. russ_watters

    News Terrible Economics in USA Today

    USA Today is a half decent paper and has a good website format, so it is one of my primary sources of news. Nevertheless, it, as most news sources, sometimes produces some real crap. I'm not sure what motivates articles like this, but it is horribly wrong and misleading and since economics is...
  24. thrill3rnit3

    Introduction to economics book

    any recommendations?
  25. D

    Mathematical Economics, Minimization

    Homework Statement Consider the following general form of a constant elasticity of substitution production function: y = [SLp + (1 - S)Kp]1/p Assume a firm is trying to minimize the cost of producing any given y. Cost are given by C = wL + rK Find the firm's cost minimizing demand...
  26. 0

    Actual After-Tax Rate of Return. [Engineering Economics]

    Greetings, I'm trying to solve a 3 part problem which has the following questions: a) Determine the rate of return before taxes. After Solving: Answer: 21 % b) If the effective income tax rate is 42 percent, what is the approximate after-tax rate of return? After Solving: Answer: 8 %...
  27. B

    Any Progress in Stable Economics?

    Just a thing I have been mulling over in my head lately has been the thoughts of stable economics (not reactionary Keynsian economics that the government has been employing)... it seems with all of the smart people in the US and around the globe we are still nowhere near a 'stable' economic...
  28. M

    Finding the Right Measure Theory Course for Graduate Studies in Economics

    Hi, I am pursuing graduate studies in economics, and I hear that "measure theory" is one of the classes that will impress admission commitees. I don't see anything by that name in my school's catalog. Does this class go by another name sometimes?
  29. A

    Statistics vs. Economics: Which is Tougher in College? GPA Killer?

    Which is harder/more time-consuming in college? GPA killer?
  30. C

    Economics resource request: highly inefficient markets

    Much of undergraduate economics is dedicated to the study of efficient markets. This is a useful simplification in many fields -- no one cares who they buy stock from, and gasoline, wheat, and other commodities are almost as undifferentiated. I've recently been considering markets that are...
  31. J

    News Too Big to Fail": Economics & Implications

    Does anyone know if any economist are studying the implications of this concept? I have never heard of economic theories with assumptions that there are multiple businesses that cannot faile due to their size. There are also questions about the implications is has for the actions of CEO's of...
  32. K

    What is the correct calculation of opportunity cost in economics?

    Hi all, I've just taken my first postgraduate "Managerial Economics" class (aimed at people who haven't studied economics before), and my lecturer has thrown me a curve ball with the concept of opportunity cost. Either my memory's not as good as it used to be, or his isn't. Anyway, he gave an...
  33. B

    Exploring Alternative Energy: Manufacturing, Economics & MWatts

    I know that economics must play a large part in determining why alternative energies aren't as effective as burning oil. Oil is cheaper. I'm an electrical engineering student and I'm curious about some of problems plaguing the alternative energy business. Ie. Solar, Wind, Geothermal, ect...One...
  34. Link

    Programs Which minor is the best complement to an engineering major, finance or economics

    So I'll be doing a degree in engineering but will have some space for some free electives and see myself working as a engineering manager in a high tech company in the future. My goal is to earn as much money as possible. (yes I am a modern ebenezer scrooge:D) Thus I'm interested to know which...
  35. A

    Finance or Neurons: Which Career Path Is Right for You?

    Which would you rather have as a career: finance/economics or neuroscience? Why?
  36. M

    Economics: IRR vs NPV - Comparing Projects A and C

    Hello, I've had an intro economics course recently and there are still a couple of questions unanswered. One of the examples given where a handfull of projects with an initial investment and positive cash flows the following years. The question was which project is preferable when looking...
  37. Phrak

    Economics: Forcing Interest Rates Low

    ECONOMICS "Any legislation to force intestest rates lower will probable have to wait for a new president." This is a quote from the talking heads at ABC news (ABC World News). What would be the effects of national legislation forcing mortgage lenders, by law, to make loans at a lower rate?
  38. BWV

    Evonomics: Evolution and Economics Explained

    Would highly recommend the book reviewed here - shows how evolutionary models are supplanting the simple physics-based models of neoclassical economics http://www.sciam.com/arti...mics-skeptic-january-2008 Evonomics Evolution and economics are both examples of a larger mysterious...
  39. Astronuc

    Books and Resources on Business and Economics

    Well, we have a forum devoted to Science Book Reviews, so I thought I'd start one on business and economics. When Markets Collide: Investment Strategies for the Age of Global Economic Change, by Mohamed El-Erian...
  40. lisab

    Paul Krugman wins Nobel Prize in Economics

    I've always enjoyed reading Krugman's columns, but I wasn't aware he did work at this level. http://www.msnbc.msn.com/id/27159654/
  41. O

    Complexity Economics: What is it & How Has it Emerged?

    What is Complexity Economics? How has it emerged? This description sounds very interesting in Wikipedia: "It is one of the four C's of a new paradigm surfacing in the field of economics. The four C's are complexity, chaos, catastrophe and cybernetics." These four Cs sound so physical like...
  42. L

    Questions About Economics: Math Involved, Micro vs Macro, Interesting?

    I'm quite interested in taking a course in Economics... I'm in second year and still have no idea what my major is, so I'm sort of experimenting at the moment. I know nothing of economics, so am wondering if any of you can tell me how much math is involved? Should i take Calculus II, Linear...
  43. MathematicalPhysicist

    News A question on the economics situation at the US.

    So, now after the bailout is approved what does it mean for the tax payers? I'm not a US resident, but it intersets me what will be the tax increase there.
  44. Ivan Seeking

    News Failure of free-market economics

    With the failures of Freddie, Fannie, and now AIG, we have seen an earth-shaking failure of free-market economics. While the market would eventually correct itself, and though that should be allowed to happen, it had to be checked for fear of a complete US ecomomic collapse, which, according to...
  45. M

    University of Chicago Economics Major Applying to Law School

    I'm going to be a 3rd year at the University of Chicago. I am an economics major with a concentration in mathematics. I am interested in applying to law school. Right now, I have a 3.48 GPA, I have no idea what my LSAT scores will be (thought I imagine they will be on the higher side). I...
  46. R

    Economics and Foreign Language Advice

    I'm an economics major. I am trying to decide what foreign language I should take next year. I am already fluent in Spanish, and I would like my language choice to be a nice complement to my major. I'm not really sure what I want to do in terms of a career. I'm studying abroad in Africa...
  47. R

    Lingusitics Economics and Foreign Language

    I'm an economics major. I am trying to decide what foreign language I should take next year. I am already fluent in Spanish, and I would like my language choice to be a nice complement to my major. Any suggestions? Thanks, Rangerrand
  48. Ivan Seeking

    News My Take on Trickle-Down Economics

    I was once a fan of trickle-down economics. But no matter how flawed the original concept may or may not have been, which is not the point here, I have to wonder if there is any basis for this theory in an increasingly outsourced economy. When one invests in a business in the US, it likely will...
  49. D

    A smoking gun linking Economics to Physics?

    I was reading the Wikipedia page on Pareto distribution, part of the WikiProject Statistics. http://en.wikipedia.org/wiki/Pareto_distribution Economist Vilfredo Pareto in about 1906 developed the Pareto principle [80-20] later expanded to Pareto distribution, a probability density function...
  50. T

    Matrices - Economics based question

    Homework Statement An island's economy is divided into three sectors-tourism, transportation, and services. Suppose that each dollars worth of tourism output requires inputs of $0.30 from the tourism sector, $0.10 from the transportation sector, and $0.30 from the services sector; each dollars...
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