Economics Terms A-Z
This subdiscipline of economics studies how the economic decisions made by individuals and institutions are influenced by psychological, cognitive, emotional, cultural, and social factors. Specifically, it busies itself with looking at rational decision making - and its boundaries - in contrast to how decision making is seen in classical economics.
In classical economics, decision making is seen as black and white: people make optimal decisions that always provide them with the best results in terms of satisfaction and benefit. Behavioural economics, however, shows how this isn’t the case, and that humans also make decisions that are contrary to their interests or don’t maximise benefits. It then tries to explain why this is the case.
Scarcity and Choice
Where there is scarcity, choices must be made! Scarcity refers to the finite nature and availability of resources while choice refers to people’s decisions about sharing and using those resources. The problem of scarcity and choice lies at the very heart of economics, which is the study of how individuals and society choose to allocate scarce resources.
Top Economics Think Tanks and Research Institutes in the US
Think tanks are important institutions in the modern world. As the world becomes more globalised, think tanks which can undertake research and advocacy work at a transnational level become essential players in the global scene. Seeing as economics doesn't happen in a vacuum - each country's economic situation affects the political situation of every other country - they are also crucial to the profession (or at least, line of academic study) of most of the readers of this website. But which ones are the ones you should be following?
2017 Nobel Prize in Economics awarded to Richard Thaler
The Nobel Prize for Economics, the most prestigious prize in the field, has been awarded this year to American economist Richard Thaler. The prize, fully titled The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel, was announced by The Royal Swedish Academy of Sciences and will be awarded in a ceremony in Stockholm in December.