APPLIED ECONOMICS Meaning and
Definition
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Applied economics refers to the utilization and implementation of economic principles, theories, and techniques in practical and real-world scenarios. It is a branch or subfield of economics that focuses on the application of economic analysis to address specific economic issues, problems, or challenges faced by individuals, businesses, industries, governments, and societies as a whole.
Applied economics involves the use of economic modeling, statistical methods, and empirical research to generate insights and provide solutions for economic problems. It entails the study of how economic theories and concepts can be employed to analyze and understand real economic situations or phenomena across various sectors such as finance, labor, agriculture, healthcare, environment, transportation, and international trade.
The aim of applied economics is to provide policymakers, businesses, and individuals with practical and actionable knowledge that can be used to make informed decisions. This field investigates issues such as the impact of government policies on the economy, the analysis of market behavior, the evaluation of economic efficiency, the assessment of costs and benefits, the estimation of consumer demand and supply, and the examination of the effects of technological advancements. Researchers and practitioners in applied economics often collaborate with other disciplines such as sociology, political science, and management to gain a comprehensive understanding of the economic factors influencing various aspects of society.
Overall, applied economics serves as a bridge between economic theory and real-world problems, contributing to evidence-based decision-making and helping to improve economic outcomes.
Etymology of APPLIED ECONOMICS
The word "applied economics" is formed by combining the words "applied" and "economics".
- "Applied" comes from the Middle English word "applien", which means "to put to use" or "to bring into action". It originated from the Old French word "aplier" and the Latin word "applicare", both having similar meanings.
- "Economics" is derived from the Greek word "oikonomia", which means "household management" or "administration of property". It is a combination of "oikos" meaning "house" and "nemein" meaning "to manage". Later, the concept of economics broadened to include the study of wealth and resource allocation in a larger context.
