Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail
Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail

Economist

What it is:

An economist is a social scientist devoted to the study of the relationship between human behavior and supply and demand.

How it works (Example):

The study of economics is generally divided into two areas: microeconomics and macroeconomics. Microeconomics is the study of individual company and consumer behavior. Macroeconomics is the study of the broad economy and its indicators. Both microeconomics and macroeconomics heavily consider the effects of government activity. Economists can further specialize in several disciplines.

Economists subscribe to several schools of economic thought, each of which has a unique set of ideas and explanations about economic situations and policies. Adam Smith, John Maynard Keynes and Karl Marx are prominent examples of economists who have established new schools of economic thought.

Why it Matters:

Although economists frequently predict and explain the financial outcomes of certain decisions or events, these financial outcomes are often part of a wider social response. This is why economists frequently incorporate political, cultural, geographical and other factors into their studies.