Applied Economics

The purpose of applied economics is to improve the quality of practice in business, public policy, and daily life by thinking rigorously about costs and benefits, incentives, and human behavior. The human race's curiosity has expressed itself in the creation of various fields of study that examine specific aspects of the world around us. The 'natural' sciences like physics and chemistry study the behaviour of the basic particles and elements of the universe and their interactions with each other. The 'humanities, on the other hand, study the creations of humans, such as literary texts and the arts. "As an area, applied economics is about the consideration of topics that are relevant to some group of economic decision makers. Once an important and interesting question has been determined the study needs to contain a discussion of the relevant economic theory and some data analysis using appropriate econometric methods. Economics affects our daily lives in both obvious and subtle ways. From an individual perspective, economics frames many choices we have to make about work, leisure, consumption and how much to save. Our lives are also influenced by macro-economic trends, such as inflation, interest rates and economic growth. Applied economics deals with the study of economics in real world practices as contrast to the theory of economics. Thus, applied economics involves economists taking generally accepted theory and applying those theories to something that is happening in the real world, with an eye toward determining what can reasonably be expected to happen next.This 4th Edition is an exploratory and introductory course which leads you to Applied Economics National Certificate Level I. It covers eight units under three sections. These seven units are restructured and revised with updated content in this edition to make each subject matter more interesting and easier to understand by the students. It aims to inspire learners in striving harder by developing a sense of responsibility and commitment as they go along with the course.