What do economists study?


Economists study the decision-making behavior of individuals, firms, organizations and governments. Most people can choose what to consume, where to work, whether to have children, or whether and how much to save for the future. Companies can decide what goods and what quantities to produce, but also how much to spend on research and development or which workers to hire. A government can decide what share of the national budget to spend on health care or education for its citizens. Through tariffs, taxes and subsidies, It can also influence under which conditions and with which countries trade is conducted. Similarly, economic policies guide the regulation of carbon emissions. These choices are often limited due to scarce resources (e.g., money, time, information). 

Economists study the drivers and impacts of choices. They help us understand the major social problems of our time - including climate change, inequality, and poverty. Effective solutions to these problems require the work of economists.