Ökonoomia

Ökonoomia is the Estonian word for economics. Economics is a social science that studies how individuals, businesses, governments, and nations make choices about allocating scarce resources to satisfy their unlimited wants and needs. It broadly categorizes into two main branches: microeconomics and macroeconomics.

Microeconomics focuses on the behavior of individual economic agents, such as consumers and firms, and how they interact in markets. It examines topics like supply and demand, price determination, consumer choice, and market structures. Understanding microeconomic principles helps in analyzing how specific markets function and how policies might affect them.

Macroeconomics, on the other hand, deals with the performance, structure, behavior, and decision-making of an economy as a whole. It analyzes aggregate phenomena such as inflation, unemployment, economic growth, and national income. Macroeconomic policies, such as fiscal and monetary policy, are designed to influence these broad economic indicators.

The study of ökonoomia, or economics, involves various theories, models, and empirical analysis to understand economic phenomena and to inform policy decisions. It is a discipline that seeks to explain how economies work and how they can be improved.