Question

Explain how Applied Economics Work

Answer 1

Answer:

$\huge \mathrm{Understanding \: Applied \: Economics}$

Applied economics is the application of economic theory to determine the likely outcomes associated with various possible courses of action in the real world. By better understanding the likely consequences of choices made by individuals, businesses, and policy makers, we can help them make better choices. If economics is the science of studying how people use various, limited means available to them to achieve given ends, then applied economics is the tool to help choose the best means to reach those ends. As a result, applied economics can lead to "to do" lists for steps that can be taken to increase the probability of positive outcomes in real-world events.