What is the essential difference between economics and finance?

Updated on science 2024-02-22
12 answers
  1. Anonymous users2024-02-06

    Economic activity creates real wealth; Financial activities can make money but do not create value Finance focuses on the study of time series, looking for variables in time series; Economics, on the other hand, focuses on the study of spatial scope: the problem of achieving optimization in a coordinate system Finance is also divided into macro and micro: macro mainly refers to money, banking and international finance; Micro refers to risk management and the pricing of assets

  2. Anonymous users2024-02-05

    Economics is a major category of science, including finance, international science, finance, taxation, statistics, various professional economic fields, and other related disciplines Economics is a science that studies various economic activities and various corresponding economic relations and the laws of operation and development of human society at all stages of development. Economic activities are activities in which people carry out production, exchange, distribution, consumption and closely related activities under the premise of certain economic relations. Economic relations are the mutual relations formed by people in economic activities, and among the various economic relations, the dominant one is the production relationship.

    Economics is a general term for various disciplines that study theoretical, applied, historical, and related methods of various economic activities and economic relations of human beings. Economics can also be referred to as economic science

  3. Anonymous users2024-02-04

    In fact, it is relatively close, specifically the economy is macro is the overall social added value, and finance only refers to the financial industry, such as: banks, investment companies, financing companies, etc.

  4. Anonymous users2024-02-03

    The economy and finance should be the relationship between the contained and the included, and finance is nothing but a part of the economy.

  5. Anonymous users2024-02-02

    The main differences are as follows:

    1. Different research fields: economics is a social science that studies human behavior and how to rationally allocate limited or scarce resources; Finance.

    It is the discipline that studies how companies, individuals, **, and other institutions recruit and invest money.

    2. Different contents: finance includes the theory of financial market operation at the macro level and the theory of corporate investment at the micro level; The concept of economics is not obvious, and finance is a branch of economics.

    3. Economics and finance have different employment directions. Industries that can be engaged in economics are accounting, finance, investment, marketing, marketing, banking, finance, teachers, etc. Finance can be done in commercial banks, including the four major banks of China Industry and Commerce, Construction, Agricultural Bank of China, and joint-stock commercial banks such as China Merchants Bank, city commercial banks, and domestic branches of foreign banks, ** companies, including ** management companies; Shanghai Stock Exchange.

    Shenzhen Stock Exchange, Futures Exchange, etc.

    Extended Materials. Introduction to Finance and Economics.

    Finance is a category in economics. Finance is mainly to investigate and study various economic activities in the financial and money circulation market. Majored in economics at university.

    They are all studied as academic research, and economics has a wide range of research and many topics, and it is usually not studied through concrete practice. Finance has its origins in economics, but it is independent of economics because it has its own unique research methods.

    and make specific policies based on the structure of the economy.

    Finance is a branch of applied economics. At the same time, it is also one of the most successful branches.

    In layman's terms, economics is the study of various economic activities of human beings, and the scope is very large.

    The study of economics has theoretical research, that is, the use of various mathematical models to describe the basic laws of economic operation, just like Newton's theorem describes the physical laws. For example, Adam Smith.

    Keynes, Ricardo, Friedman.

    These are all well-known economic thinkers.

    Economics can't just have theory, what are the specific applications in the real world? The study of this problem belongs to applied economics.

    Applied economics is still very broad, there is a research environment, there is a study of public health.

    There are those who study social welfare, etc.

    Among them, there is a category that focuses on the study of financial systems such as money, banking, and companies, and finally becomes a separate discipline because of its special attention and successful development, which is what we usually call finance.

  6. Anonymous users2024-02-01

    Economics is the discipline of designing all aspects of social life, and the economics major is broader than the finance major, more macro than the financial major. The concept of economy is larger than that of finance, including the production, circulation, exchange, and distribution of the whole society. Economy is a broad concept, and "economy" is how to achieve the greatest effect at the lowest cost, that is, how to choose the choice with the least cost and the greatest effect among all possible choices, that is, under the constraints of various subjective and objective, natural and interpersonal conditions.

    Finance is a special industry with monetary funds as the object of operation, serving social production, and is only a branch of social economy. It has been said that finance is the blood and the core of the modern economy.

    Internationally speaking, there are generally two branches of finance, one is to study the laws of financial markets, such as the pricing of financial instruments, etc., which is what we generally call financial engineering; Another branch is corporate finance, which studies the behavior of microeconomic agents in the market, such as the optimal capital structure of a company, etc., which is corporate finance. Finance is the financing of funds, which is the study of the cost value of funds and the direction of capital investment, and the study of how to invest and finance.

  7. Anonymous users2024-01-31

    1. Differences in research directions: economics is an optimization strategy for social behavior and a reasonable proportion of inherent energy; Finance is refined from economics for more nuanced analysis;

    2. Content differences: Finance includes macro and micro economics, but economics is a large and general discipline;

    3. Employment differences: Practitioners in accounting, marketing, investment and other types are all graduates of economics, but most of the graduates of finance are engaged in banks, securities firms, investment banks, etc.;

    4. Perspective differences: the dialectical economic relationship is economics, and the financial theory is the impact of capital flow.

    An overview of economics as well as finance.

    The major category of economics includes finance, which is usually the study of the role of money and finance in various economic activities in the commodity market. However, the research and exploration of economics is wide and there are many subjects, and it is often not studied in a specific way. Economics gave birth to finance, which is different from economics because of the special form of research and investigation in finance, whether it is understood from the microeconomic or macroeconomic level, finance has its special research nature.

  8. Anonymous users2024-01-30

    Difference Between Finance and Economics:

    1. Field of study: Economics is a social science that studies human behavior and how to rationally allocate limited or scarce resources. Finance is the discipline that studies how companies, individuals, **, and other institutions recruit and invest money.

    2. Content: Finance is a branch of economics.

    3. Focus: Economics is usually classified as a social science, which mainly focuses on the study of production, consumption, and the distribution of goods, services and resources at the macro level. Finance focuses on the study and analysis of financial markets, as well as the pricing of financial assets traded in financial markets, as well as the operation and governance of corporate finance.

    Finance focuses on practice, while economics focuses on theory. Both economics and finance are closely related to mathematics. The impact of finance on economic development is twofold.

    It can not only greatly support economic development, but also increase the possibility and severity of objectively existing financial risks to turn into financial crises and undermine economic development.

  9. Anonymous users2024-01-29

    To use an analogy: the economy is all the behaviors of people in the process of money flow, including financial, behavioral, and psychological. Finance refers to the financial behavior in economic activities.

  10. Anonymous users2024-01-28

    Economics and finance are both studies of economic phenomena, but the Economic Society is a more comprehensive study of economic phenomena existing in society, while finance only studies economic phenomena in the field of finance. Therefore, the biggest difference between economics and finance is the difference in the object of study.

  11. Anonymous users2024-01-27

    Economics is concerned with production, consumption, the exchange of goods and services, and the transfer of wealth, while finance is concerned with organizing the optimal use of funds in order to make one's own investments more profitable.

    The economy is not part of finance, but finance is part of the economy.

    The main purpose of economics is to focus on the monetary value of time, i.e., the sum of money; One can take the time to buy "time". Finance focuses on the time value of money, that is, the rupee today is worth more than the rupee a year from now.

    Economics explains the factors behind the surplus or shortage of goods and services, which affect society as a whole, while finance explains the reasons for interest rate fluctuations, currency movements. Any commodity, cash inflows and outflows, etc.

    Economics is a social science that studies the management of goods and services, while finance is a science that studies the allocation and management of funds: loans, savings, spending, investments, etc.

    The economy aims to optimize resources of a finite nature, while finance aims to maximize wealth.

  12. Anonymous users2024-01-26

    The first difference between economics and finance is that economics does not have as high mathematical requirements as finance;

    The second difference is that the working environment of graduates is not the same, students who graduate from economics majors are generally engaged in research work more, because they are exposed to more theoretical things, while finance is more practical, and generally graduates can go to ** companies, can go to work in banks, work very decently, and the salary is also high;

    The third difference is that graduates with economics majors work in research institutes, and the work is generally very easy and less restrictive, while graduates with finance majors make a lot of money but are very tiring. Economics and finance seem to be very glamorous, but they require more than ordinary efforts, otherwise many graduates of this major will change careers, wouldn't it be a pity.

    Comparatively speaking, finance may be better than economics to find a job, because the direction of economics is to engage in research, which requires a thorough analysis of the economic situation and a good understanding of the domestic and international economic situation, but doing research all the time is very boring for girls, and even boys are rarely willing to stick to it.

    Finance is different, you can work in a bank, it is undoubtedly a very satisfactory and stable job for girls, the only disadvantage is that it is not easy to enter the bank, which requires the family to be able to arrange, or they are very good, otherwise it is better to study accounting and be employed, as long as you work hard to get an accounting certificate, you will have a good development.

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