From Envirowiki

Economics examines the allocation of scarce resources among competing wants. It explores the principles of supply and demand and the determinants of price. Other topics include growth and productivity, global interdependence and the interrelated roles of consumers, producers, and government in an economic system.

Economics is both an academic discipline as well as an important part of the political system. The two major divisions of Economics are Microeconomics and Macroeconomics. Economists often argue that economics is a science, but it isn't, due to the fact that it operates in a constructed world view^[1], instead, it is more like a philosophy^[2].

Contents 1 Micro Economics 2 Macro Economics 3 Other economics 4 references

[edit] Micro Economics

Microeconomics is the branch of economics concerned with the decisions made by individuals, households, and firms and how these decisions affect the prices of goods and services and the factors of production (land, labour, and capital).

[edit] Macro Economics

Macroeconomics is the study of aggregate economic activity and, in particular, the study of real GDP growth, unemployment, and inflation^[3]. Microeconomics focuses on the individual consumer and firm behavior, while Macroeconomics focuses on the aggregate of all consumer and firm choices.

[edit] Other economics

Environmental Economics is a market-based approach to achieving a sustainable economy that integrates long-term economic growth, environmental quality and social fairness through innovative taxes, tax incentives, auctioned permits and other market-based mechanisms (adapted from the Centre for a Sustainable Economy website). It is still a relatively small branch of Economic study.

Economists, politicians and the Status Quo argue that economics, and in particular Environmental Economics, is crucial in the push for a more sustainable world. The arguement runs that many people will not respond to moral claims or aesthetic objections to current environmental destruction. However, with their pocketbooks at stake, many more people are likely to respond, and quickly. Environmental Economics can be used to valuate ecosystem services (see http://www.naturalcapitalproject.org/) and to push for governmental policies that incorporate the actual, long-term costs of various industries such as mineral extraction.

[edit] references

1. ↑ Economics is NOT Natural Science! Dick Richardson 28. Jan 2001
2. ↑ Economics and Physics Envy by Wally Bock. Accessed 2008 01 05.
3. ↑ http://www.econplace.com