Economics & Finance

Introduction of the subject:

Economics and finance are often taught and presented as very separate disciplines; however, economics and finance are interrelated, inform, and influence each other.

Economics is the social science that studies economic activity to gain an understanding of the processes that govern the production, distribution and consumption of goods and services in an economy or more precisely is the social science that studies the production, distribution, and consumption of goods and services. Economics focuses on the behavior and interactions of economic agents and how economies work. Microeconomics analyzes basic elements in the economy, including individual agents and markets, their interactions, and the outcomes of interactions. Individual agents may include, for example, households, firms, buyers, and sellers. Macroeconomics analyzes the entire economy  meaning aggregated production, consumption, saving, and investment) and issues affecting it, including unemployment of resources labor, capital, and land , inflation, economic growth, and the public policies that address these issues  monetary, fiscal, and other policies.

Finance is a field that deals with the allocation of assets and liabilities over time under conditions of certainty and uncertainty. Finance also applies and uses the theories of economics at some level. Finance can also be defined as the science of money management or in a precise manner. Finance is a field that is concerned with the allocation investment of assets and liabilities over space and time, often under conditions of risk or uncertainty. Participants in the market aim to price assets based on their risk level, fundamental value, and their expected rate of return. Finance can be split into three sub-categories: public finance, corporate finance and personal finance. 

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