Economics is the social science of studying the production, distribution and consumption of goods and services. It is a complex social science that spans from mathematics to psychology. At its most basic, however, economics considers how a society provides for its needs. Its most basic need is survival, which requires food, clothing, and shelter. Once those are covered, it can then look at more sophisticated commodities such as services, personal transport, entertainment, the list goes on. Today, this social science known as “Economics” tends to refer only to the type of economic thought which political economists refer to as Neoclassical Economics. It developed in the 18th century based on the idea that Economics can be analyzed mathematically and scientifically.
A country’s economy consists of three major economic agents, consumers, firms, and government. Analysing the choices made by these economic agents is one of the main subjects of microeconomics.
In this economics and finance course, you will learn how the decisions made by economic agents are represented in the market as demand and supply of commodities. You will also learn about equilibriums in the market, which is when the quantity demanded is equal to the quantity supplied. The derivation of this equilibrium is another focus of microeconomics. By deriving an equilibrium in a market, we can see at which level the price will be and how much of a transaction will occur.
Personal finance covers a wide array of topics such as banking, investing, saving and insurance. Personal finance is a term that covers managing your money and saving and investing. It encompasses budgeting, banking, insurance, mortgages, investments, retirement planning, and tax and estate planning. It often refers to the entire industry that provides financial services to individuals and households and advises them about financial and investment opportunities.
Personal finance is about meeting personal financial goals, whether it is having enough for short-term financial needs, planning for retirement, or saving for your child’s college education. It all depends on your income, expenses, living requirements, and individual goals and desires and coming up with a plan to fulfill those needs within your financial constraints. But to make the most of your income and savings it’s important to become financially literate, so you can distinguish between good and bad advice and make savvy decisions.