Economics

The supply and demand model describes how prices vary as a result of a balance between product availability and demand. The graph depicts an increase (that is, right-shift) in demand from D1 to D2 along with the consequent increase in price and quantity required to reach a new equilibrium point on the supply curve (S).
A 1638 painting of a French seaport during the heyday of mercantilism
The publication of Adam Smith's The Wealth of Nations in 1776 is considered to be the first formalisation of economic thought.
The Marxist critique of political economy comes from the work of German philosopher Karl Marx.
John Maynard Keynes (right) was a key theorist in economics.
Economists study trade, production and consumption decisions, such as those that occur in a traditional marketplace.
Electronic trading brings together buyers and sellers through an electronic trading platform and network to create virtual market places. Pictured: São Paulo Stock Exchange, Brazil.
An example production–possibility frontier with illustrative points marked.
A map showing the main trade routes for goods within late medieval Europe
Pollution can be a simple example of market failure. If costs of production are not borne by producers but are by the environment, accident victims or others, then prices are distorted.
Environmental scientist sampling water
A basic illustration of economic/business cycles
US unemployment rate, 1990–2021
List of countries by GDP (PPP) per capita in 2014

Social science that studies the production, distribution, and consumption of goods and services.

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Health economics

World health expenditure as share of global GDP.
How much did the UK spend on healthcare in 2012?
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Health economics is a branch of economics concerned with issues related to efficiency, effectiveness, value and behavior in the production and consumption of health and healthcare.

Financial economics

Modigliani–Miller Proposition II with risky debt. Even if leverage (D/E) increases, the WACC (k0) stays constant.
Efficient Frontier. The hyperbola is sometimes referred to as the 'Markowitz Bullet', and its upward sloped portion is the efficient frontier if no risk-free asset is available. With a risk-free asset, the straight line is the efficient frontier. The graphic displays the CAL, Capital allocation line, formed when the risky asset is a single-asset rather than the market, in which case the line is the CML.
The Capital market line is the tangent line drawn from the point of the risk-free asset to the feasible region for risky assets. The tangency point M represents the market portfolio. The CML results from the combination of the market portfolio and the risk-free asset (the point L). Addition of leverage (the point R) creates levered portfolios that are also on the CML.
Plot of two criteria when maximizing return and minimizing risk in financial portfolios (Pareto-optimal points in red)
Examples of bivariate copulæ used in finance.
Binomial Lattice with CRR formulae
Stylized volatility smile: showing the (implied) volatility by strike-price, for which the Black-Scholes formula returns market prices.
Project valuation via decision tree.
Implied volatility surface. The Z-axis represents implied volatility in percent, and X and Y axes represent the option delta, and the days to maturity.

Financial economics is the branch of economics characterized by a "concentration on monetary activities", in which "money of one type or another is likely to appear on both sides of a trade".

Goods and services

Goods are items that are usually (but not always) tangible, such as pens, physical books, salt, apples, and hats.

Service-goods continuum.

Taken together, it is the production, distribution, and consumption of goods and services which underpins all economic activity and trade.

Applied economics

The supply and demand model describes how prices vary as a result of a balance between product availability and demand. The graph depicts an increase (that is, right-shift) in demand from D1 to D2 along with the consequent increase in price and quantity required to reach a new equilibrium point on the supply curve (S).

Applied economics is the study as regards the application of economic theory and econometrics in specific settings.

Mainstream economics

The supply and demand model describes how prices vary as a result of a balance between product availability and demand. The graph depicts an increase (that is, right-shift) in demand from D1 to D2 along with the consequent increase in price and quantity required to reach a new equilibrium point on the supply curve (S).

Mainstream economics is the body of knowledge, theories, and models of economics, as taught by universities worldwide, that are generally accepted by economists as a basis for discussion.

Business economics

The supply and demand model describes how prices vary as a result of a balance between product availability and demand. The graph depicts an increase (that is, right-shift) in demand from D1 to D2 along with the consequent increase in price and quantity required to reach a new equilibrium point on the supply curve (S).

Business economics is a field in applied economics which uses economic theory and quantitative methods to analyze business enterprises and the factors contributing to the diversity of organizational structures and the relationships of firms with labour, capital and product markets.

Distribution (economics)

The supply and demand model describes how prices vary as a result of a balance between product availability and demand. The graph depicts an increase (that is, right-shift) in demand from D1 to D2 along with the consequent increase in price and quantity required to reach a new equilibrium point on the supply curve (S).

In economics, distribution is the way total output, income, or wealth is distributed among individuals or among the factors of production (such as labour, land, and capital).

Consumption (economics)

Act of using resources to satisfy current needs and wants.

People buying home electronics at a shopping mall in Jakarta, Indonesia
Energy consumption per capita-Iran (Cro)

Consumption is a major concept in economics and is also studied in many other social sciences.

Economy

Area of the production, distribution and trade, as well as consumption of goods and services by different agents.

This map shows the gross domestic product (GDP) per capita for every country (2020).
Storage room, Palace of Knossos.
10 Ducats (1621), minted as circulating currency by the Fugger Family. Coins were rare and not used by the absolute majority of people during the middle ages.
Anders Chydenius (1729-1803) was known his the 1765 pamphlet called The National Gain (Den nationnale winsten), in which he proposes ideas of free trade and industry, explores the relationship between economy and society, and lays out the principles for liberalism, capitalism, and modern democracy. In the book Chydenius published theories closely corresponding to Adam Smith's invisible hand, eleven years before Smith published his book, The Wealth of Nations.
Sächsische Maschinenfabrik in Chemnitz, Germany, 1868
ESET (IT security company) headquarters in Bratislava, Slovakia.
Black market peddler on graffiti, Kharkiv

Today, the range of fields of study examining the economy revolves around the social science of economics, but may also include sociology (economic sociology), history (economic history), anthropology (economic anthropology), and geography (economic geography).

Political economy

Study of how economic and political systems are linked.

Jean-Jacques Rousseau, Discours sur l'oeconomie politique, 1758
Robert Keohane, international relations theorist
Susan Strange, international relations scholar

Originating in the 16th century, it is the precursor to the modern discipline of economics.