Applied economics is the application of economic theory and econometrics to specific settings. It involves using the insights gained from economic theory and research to make better decisions and solve real-world problems. 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.

Some key features of applied economics include:

• Use of data: Applied economics combines economy-framed theories with data and information to improve real-world outcomes.

• Implementation: Applied economics is the implementation of economic theory in varied circumstances.

• Practicality: Applied economics involves examining ways to achieve practical goals and requires making judgments about whether or not the logic of pure economics is relevant to the real world.

• Tools: Applied economics can involve the use of case studies and econometrics, which is the application of real-world data to statistical models and comparing the results against the theories being tested.

Applied economics is a popular tool in business planning and for public policy analysis and evaluation. It is also an invaluable tool for public policy makers, as many economists are employed to predict both the macro- and microeconomic outcomes of different policy decisions.

In summary, applied economics is the practical application of economic theory and econometrics to real-world situations, with the aim of informing economic decisions and predicting possible outcomes.