While traditional economy theories are based on the fact that humans are rational beings that make productive decisions, behavioral economics is trying to integrate human flaws into economic predictions. By taking into account things like lack of self control or motivation, behavioral studies are trying to narrow down random factors from economic theories.
More and more people are struggling to pay their debts every day and in more and more cases that proves to be extremely difficult, if not even borderline impossible. Poor investments or business decisions, taking more credit than real financial capabilities, these are all reasons why people may find themselves in the situation of not […]
A sub-field of economics, the environmental economics studies the impact that environmental policies have on a nation and investigates the costs of dealing with the effects resulting from misuse of common property or “tragedy of the commons”.
It is important to know what is business economics used for and why it is so important. A good business strategy can reduce costs, maximize profit and lead to development. Business economics meets the needs of the business firm and finds the best solution to the existing problems.
While the results from individual studies cannot be extrapolated on a macroeconomic model and the investment policies of a business cannot be investigated without proper understanding of the macroeconomic growth, in the macroeconomics vs microeconomics dispute there is no winner: the two disciplines are bound together.