What are the branches of economics? Follow

Economics is a very vast subject which concerns itself with the best possible way to distribute resources in a society. Within this subject, there are many types of branches that focus on various aspects, and there are also different types of schools of thought which offer differing views on different issues of economics.

The first division is between Microeconomics and Macroeconomics: 

• Microeconomics: Everyday we are faced with a lot of economic decisions like choosing what can be bought with the available money or what can we do with our free time. These questions are related to individual factors like people, families, businesses, etc. and so these topics of study make up an area in economics called microeconomics. 

• Macroeconomics: Macroeconomics studies the relationship between whole economics aggregates. These are elements that consist of the total sum of other types of variables. It includes GDP, economic growth, inflation, etc.

Branches of Economics:

• Classical economics: Developed by David Ricardo and Adam Smith amongst others, classical economics is thought to be the foundation of what is known as modern economics today. It is based on the operation of free markets. It suggests that economics generally, works best when government intervention is at a minimal, and it is concerned with minimum government spending, private property protection, and free trade. But it does recognize that government intervention is needed for things like education and such. 

• Behavioral Economics: This particular branch of economics is focused on studying the effects of cognitive, social, emotional and psychological factors on the economic decisions. It is known to be based on microeconomics.

• Monetary Economics: This is the branch of economics that is known to deal with money. It studies the role and usage of money in the economic field. This particular branch of economics is related to macroeconomics. It offers a framework for analyzing the functions and role of money as a store of value, medium of exchange and a unit of account.

• Developmental economics: This branch of economics is focused on studying the various methods of promoting structural change and economic growth in the less developed and developing countries. The study is mainly focused on the application of economic analysis and theory to figure out a method to improve and promote health, workplace conditions and so on.

These are some of the main branches of economics that are mainly studied. However, the field is a vast one, and it includes more branches as well, which focuses on other areas of the economy.

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