Economics has long been a popular undergraduate major in the U.S. Understanding the inner workings of money, markets, industries, and policies in a complex and interconnected global economic system is critical. What drives our purchasing decisions? Why does the price of a particular product go up or down? Why are some countries richer than others? What factors influence employment and unemployment? All of these questions can be answered in the profession of economics.
In today’s article, we will provide you with a detailed explanation of economics majors and recommend corresponding AP and credit courses for students and parents to refer to!
What is Economics?
Economics is a discipline that specializes in the study of producing, distributing, and consuming economic resources. It covers a wide range of topics such as supply and demand, inflation, unemployment, financial markets, economic growth, and the role of government in the economy.
Often placed under the School of Social Sciences and sometimes offered under the School of Arts and Sciences or the School of Management, economics occupies an important place among the many social science majors.
Economics majors take a range of theoretical and applied courses, including statistics and mathematics, to be able to analyze and interpret economic data. They also learn how to use economic theory to solve real-world problems, such as predicting economic trends and formulating economic policies.
For economics graduates, they can find jobs in many fields, including the banking industry, consulting firms, government agencies, non-profit organizations, and even international organizations.
Branches of Specialization
Economics is a broad field that encompasses a number of sub-specialties, of which six important areas – macroeconomics, microeconomics, labor economics, international economics, econometrics, and development economics – are taken as the main areas of study in the economics program.
1) Macroeconomics
It focuses on the study and analysis of the entire economic system or economy, including total output, unemployment, inflation, economic growth, and national fiscal and monetary policies. Some of the major macroeconomic indicators include gross domestic product (GDP), consumer price index (CPI), unemployment rate, and interest rates. These indicators are extremely important for policy makers, investors and entrepreneurs as they help in understanding the health of the economy and its future course. Macroeconomics is used in policy making, economic forecasting, investment decisions, international trade and social planning to name a few.
2) Microeconomics
The main study is the behavior of individual markets, consumers and businesses. The core issues explored in microeconomics include how the prices of goods and services are determined and how productive resources are allocated among different sectors in society.
In microeconomics, the theory of consumer behavior explores how consumers make purchasing decisions to maximize their satisfaction (or utility) with a limited budget. Production theory, on the other hand, examines how firms combine different inputs (e.g., labor, capital, and raw materials) in the production process in order to achieve maximum production efficiency. Microeconomics will also study market structures such as perfect competition, monopoly, oligopoly, and monopolistic competition, which correspond to different market environments and affect the behavior of firms and consumers and the distribution of economic welfare.
Microeconomics is used in industry analysis, business decision-making, public policy, market research and economic consulting, among others.
3) Labor Economics:
The main study is the labor market, and the problems associated with it, including labor supply, demand, wages, and unemployment. Through labor economics, we can understand why wages vary across occupations, industries, and regions, why some people choose to pursue education and training to improve their skills, and why some people choose not to work.
Labor economics also explores labor market unemployment and labor market inequality, in addition to examining public policies, such as minimum wage laws, unemployment insurance, and welfare policies, which all have important impacts on the labor market and the behavior of workers.
Labor economics is used in human resource management, policy making, labor law studies, and the International Labor Organization.
4) International Economics:
It mainly studies economic interactions and trade issues between different countries and covers the two major themes of international trade (i.e., cross-border exchange of goods and services) and international finance (i.e., cross-border flow of capital). In the international trade section, international economics focuses on what goods and services are produced in which countries and why they are traded, as well as the impact of trade on individual countries’ economic welfare and distributional effects. Tariffs, quotas, and other trade policies are also discussed. In the international finance section, research includes issues such as the theory and policy of exchange rate determination, the functioning of international financial markets, and how financial crises are managed and prevented.
The issues studied in international economics are both theoretical in nature and have practical policy implications, such as how to design effective trade and financial policies and how to respond to the challenges and opportunities posed by globalization.
5) Econometrics
It combines economic theory, mathematical models, and statistical inference, and can be used to predict and estimate economic relationships, as well as to test economic theories. In econometrics, economists typically construct economic models to describe and explain economic phenomena. They then collect data and follow specific mathematical and statistical methods as a way of estimating the parameters of the model and testing the accuracy of their results.
In short, econometrics is a powerful tool to help us understand and predict economic phenomena and to provide data support for policy decisions. It has applications in economic policy analysis, business decision-making, financial markets, market research, environmental studies, and medical and health economics.
6) Development Economics
It mainly studies issues related to economic growth and development in developing or low-income countries. Development economics attempts to understand the reasons for the slower economic development of these countries or regions and suggests strategies and policies to address them accordingly. The themes and concerns of the study contain: poverty, economic growth, education and health, finance and microfinance, and labor markets. Overall, development economics is the science of finding strategies and methods to address economic inequality and advance economic prosperity around the world.
These are the six branches of economics. Each branch is an important part of the tree. Regardless of which branch the degree is presented as, the core curriculum covers macro and microeconomics, applied economics, and econometrics. Other elective courses are chosen based on the degree program and the needs of the student.
Professional Curriculum Design
There are many universities in the United States that offer majors in economics, such as:
- The University of Chicago: Economics at the University of Chicago has a far-reaching influence and history andis globally recognized as a premier academic place in economics. The University’s economics has a unique methodology and philosophy andhas repeatedly set the trend in the economics community, with far-reaching impact. The Chicago School of Economics was born here, and many Chicago schools of thought, such as the “Chicago School of Economics,” have produced more than 35% of the world’s Nobel Prize winners in economics. In addition to the regular economics courses, the University of Chicago offers special courses such as “International Economics”, “Environmental Economics”, “Economic History”, and “Legal Economics”.
- Columbia University: Columbia University’s Department of Economics is one of the world’s top economics research institutes, and its courses provide in-depth theoretical analyses and empirical applications, aiming to provide students with a broad and comprehensive knowledge of economics. Over the years, Columbia’s economics faculty and alumni have included a number of winners of the Nobel Prize in Economics. Columbia’s economics is based on theoretical research, and its unique courses include “Health Economics”, “Behavioral Economics”, “Macroeconomic Dynamics” and “International Trade Theory”.
- University of California, Berkeley: Economics at UCB was originally known as “Political Economy” and has since evolved into Economics, which aims to provide solutions to current socio-economic problems through the study of economics. The economics program at UCB is part of the STEM program, which encourages students to participate in hands-on projects using the university’s resources and provides opportunities for research abroad. Special courses include “Experimental Economics”, “Political Economy”, “Public Economics”, and “Financial Economics”, etc.
Future Employment Direction
Foreign traders, economic forecasters, analysts, marketers, fund managers, stockbrokers, stock analysts, civil servants, actuaries, investment development directors, numerical planners, marketing directors, finance directors, investment and financing managers, business data analysts, banking analysts, anti-fraud strategies
Recommended Related Courses
Here are some regular courses that are suitable references for students preparing to enter the field of economics:
Algebra and Linear Algebra:
Mathematics is the foundation of economics, and many economic theories require the use of algebra to be represented; moreover, the use of algebraic techniques can help economists better understand, manipulate, and apply these models for more accurate quantitative analysis and forecasting.
Pre-Calculus:
It is important for students studying economics to understand and apply these concepts. Calculus is an important tool widely used in economics, especially in theoretical modeling in microeconomics and macroeconomics. Pre-calculus is a preparatory course for calculus.
Probability and Statistics:
Statistics plays an important role in economic analysis because economists often need to parse and interpret data. Probability and Statistics is a preparatory course for AP Statistics.
Here are some AP courses for students preparing to enter the field of economics:
AP Macroeconomics and AP Microeconomics:
This is a required course for any student wishing to study economics in college. Microeconomics focuses on the workings of individuals, businesses, and markets, while macroeconomics looks at the global and national economy. Both courses will provide students with the foundational knowledge necessary to succeed in a college economics program.
Mr. Paul Olaniba, our Gold AP Economics tutor for SMOA’s online U.S. high school program, is an experienced high school teacher with more than 7 years of teaching experience in 3 countries around the world. He currently works at Guiyang No. 1 High School, one of St. Mary’s China campuses, where he teaches Math and AP Economics. Before that, he also worked as a teacher at international schools in Shenzhen and Nanchang and has a good understanding of Chinese students’ learning characteristics. Mr. Paul Olaniba has a Bachelor’s Degree in Accounting, Information Systems, and Finance, and has 3 years of teaching experience at high schools in Shenzhen and Nanchang, China. He is committed to building engaging and friendly classrooms that are a joyful place for students to learn.
AP Pre-Calculus:
AP Calculus AB and BC:
Calculus is critical in advanced economics courses. Most economic theories and models require the use of calculus concepts.
AP Statistics:
Statistics plays an important role in economic analysis because economists often need to parse and interpret data.AP Statistics courses help students master collecting, analyzing, interpreting, presenting, and making conclusions about data.
Liam Gan, our gold AP Statistics tutor for online US high school courses, is a math major, with a master’s degree in actuarial science from Columbia University; he has worked as an adjunct instructor & teaching assistant at the University of California, Berkeley, and has received the honor of “Most Popular Teaching Assistant” many times; as an eDiscovery Data Services Manager, he led a team of about 20 people to collect eDiscovery data from clients’ network infrastructure and applications and was responsible for quarterly recruiting and evaluation; he worked as an eDiscovery Data Analyst supporting Fortune 500 financial institutions with eDiscovery structured (archive) and unstructured data (email, hard drive) through data collection, analysis, and processing.
AP English Language and Composition:
Excellent written and oral communication skills are important in any career, including economics. This course will be able to help you improve these necessary skills.
AP Computer Science Principles or AP Computer Science A:
In the current world, economists need to use complex algorithms and data analysis tools. Therefore, having a basic knowledge of computer science will allow you to come out on top in this field.
AP Psychology:
Psychology plays an important role in understanding consumer behavior. It is the foundation for important economic topics such as marketing, pricing and demand forecasting.
SMOA High School Program Highlights
In the U.S. high school education system, individual schools match or recommend Online School Courses to their students, a practice designed to help students raise their GPAs and meet the credits required for graduation, as well as to offer courses that are not offered by the school but that students need to take. With a history dating back nearly 50 years, it has gained widespread acceptance as a popular form of educational learning in the United States.
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The AP program is accredited by the College Board and the UC A-G Curriculum, and credits, transcripts, and diplomas are recognized by universities in the U.S. and around the world. Students who have earned online U.S. high school diplomas, credits and transcripts have been accepted into world-renowned universities and art colleges in the U.S., Canada, the U.K., and Australia.
It is a great way for students from domestic General High Schools, Public International Departments, International Schools and Overseas High Schools to both supplement their credits and improve their GPA. Students from domestic General High Schools and International Students can also participate in the American High School Diploma Program we offer and apply to World Universities with American High School status.
Advantages of SMOA
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SMOA – Online U.S. High School 2024 is open for enrollment on a rolling basis (includes AP Calculus BC, AP Computer Science A, AP Psychology, AP Macroeconomics, AP Microeconomics, AP Physics 1, AP Statistics, AP English Literature & Composition, AP Physics 2, Linear Algebra, Probability and Statistics, Earth and Space Science, Algebra, Fashion Design, Interior Design, and more), students can enroll at a time that works for them, or they can also choose one-on-one classes for more flexibility! We look forward to welcoming you~!