Learn About Economics on YouTube

Learn about the economic concept of scarcity from a video that features clips of kids earning income and saving to reach their goals. This video is designed to help students understand the role that assumptions play in economic decisionmaking.

Modern economists tend to divide themselves into two fields: Micro-economics and macro-economics. Micro-economics is the study of how individual actors – people, businesses, households – make decisions about their scarce resources.

What is economics?

In the broadest sense, economics studies how humans make choices under conditions of scarcity. The decisions people make can affect themselves, their families, or their societies. These decisions are constrained by limited resources, such as money, land, time, energy and information.

Economists study the social arrangements that help us produce and distribute these scarce resources. The field has two major branches: microeconomics and macroeconomics. Microeconomics focuses on the behavior of individuals and small economic units such as consumers, businesses, savers, workers and farmers. Macroeconomics considers issues such as inflation and the growth of a nation’s economy.

A basic understanding of economics gives you a new way to think about the world around you. It prepares you to be a more informed citizen and to shape public policy. It also equips you to be a better financial manager and to understand current events.

Microeconomics

The field of microeconomics studies the behavior of consumers and firms in a world of scarcity. It analyzes the trade-offs that consumers and firms make and how these decisions affect markets. It also analyzes how the interactions of consumers and firms determine market prices.

One of the main ideas in microeconomics is that consumers and firms seek to maximize their utility, or happiness, given a certain budget constraint. To do this, they try to purchase the best mix of goods and services possible within their budget. This idea is captured in the notion of consumer theory, a key concept in microeconomics.

Another key concept in microeconomics is the role of market prices in determining supply and demand. This is why microeconomics often refers to itself as price theory. It also examines the behavior of monopolies, oligopolies, and other types of markets. It does so by creating models, or simplified representations, of real-world situations. The models help economists understand and predict market outcomes.

Macroeconomics

Macroeconomics takes a bird’s-eye view of the economy and considers all economic factors that affect the performance of a nation, such as gross domestic product (GDP), inflation and unemployment. It analyzes how the choices made by individuals, businesses and government have an effect on the overall market.

It’s important to note that macroeconomics isn’t a hard science like chemistry, where one can be confident that mixing solutions A and B will always create mixture C. In contrast, macroeconomics focuses on broad trends and national policies rather than individual markets, which makes it difficult to predict outcomes.

Still, macroeconomics can give us insight into broader economic concerns that we experience on a daily basis. For instance, have you ever noticed that grocery prices seem to go up faster than they should? That’s inflation. Have you heard news reports about people losing their jobs? That’s unemployment. Macroeconomics examines these issues and more.

Economics on YouTube

YouTube offers an array of resources for those studying economics, from simple financial education to complex market trends. Channels like Logically Answered break down challenging topics into clear and easy to understand videos that are perfect for students.

Another great YouTube channel for students is the Economic Institute of America, which covers a variety of topics from microeconomics to macroeconomics in short, engaging videos. Economics U$A combines educational content with entertaining cartoons to make learning economics fun and easy, while the Company Man channel offers detailed analysis of businesses and their success, failure, and impact on the economy.

Dylan’s YouTube channel vlogs his daily life as an economics student in the UK and is an excellent resource for those who are considering studying economics at university. The Channel also provides videos about the effects of Brexit on the UK economy.

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