Introduction To Applied Economics

This document provides an introduction to applied economics, defining it as the application of economic theory to determine likely real-world outcomes to help individuals, businesses, and policymakers make better choices. It discusses how applied economics observes how economic theories work in practice at macro and micro levels, and how it helps present the true state of an economy without embellishment.

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Introduction To Applied Economics

Uploaded by

Jemimah Corporal

Available Formats

Download as PPTX, PDF, TXT or read online on Scribd

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Introduction

to Applied
Economics
Prepared by: Darel Suelto
OBJECTIVES:
Define
01 basic terms in applied economic

know
02 Important of applied economics; and

Differentiate
03 Economic and applied economics.
Economics – is a social science concerned
with the production, distribution, and
consumption of goods and services. Economics
can generally be broken down into
macroeconomics, which concentrates on the
behavior of the aggregate economy, and
microeconomics, which focuses on individual
consumers and businesses.
• Applied Economics – is the application of
economic theory to determine the likely
outcomes associated with various possible
courses of action in the real world, by better
understanding the likely consequences of
choices made by individuals, businesses, and
policy makers, we can help them make better
choices.
• applied economics is the study of
observing how theories work in
practice. The discipline may be
practiced at macroeconomics or
microeconomics levels.
• Macroeconomics refers the
whole aggregate economy,
while microeconomics looks at
economics at the individual
consumer company level.
• Applying economics to the status of
the economy of a country helps
eliminate all attempts to dress it up.
• applied economics prevents making
situations appear better or worse
than they are.
Should I study
Economics or
Applied Economics?
According to the University
of St. Andrews in Scotland:
“ This (Applied Economics degree) provides
the student with a broader perspective on the
application of economic theory to real world
issues but less knowledge of core economic
theory.”
On its website, Duke University says Applied
Economics is for people seeking a broad
understanding of economics. Students have
study several aspects of economy theory.
However, they will also have considerable
freedom in their elective courses.
Duke university Adds:
“Students are encouraged to take graduate field
courses in areas of interest, such as labor
economics, environmental economics, urban
economics, econometrics, or international
economics. Students who pursue this track often
go on to work at think tanks, in consultancies, and
in government agencies or research centers.”
Put simply, economics is the study of theories,
while applied economics is observing what
happens when you test them. We call the testing of
economic theory with statistical and mathematical
methods econometrics.
However, both courses offer very similar career
opportunities.
Activity: Write 5 differences between Economics and
Applied Economics on the box provided.

Economics Applied Economics

Assessment:
1. Why should we study economics or
applied economics?
2. Is Academic/applied economics has
really succeeded in finding effective
role?
Assignment:
1. Write a reflection paper about Applied
Economics.
Thank you