Branches of Economics

Branches of Economics :

          The two chief branches of economics are

Micro Economics :

          It examines the behavior of basic elements in the economy, including individual agents (such as households and firms or as buyers, and sellers) and market and their interaction.

Macro Economics :

          It is concerned with how the overall economy works. It studies things as employment, gross domestic product and inflation; the stuff of news stories and government policy debates.

          It studies the economy as a whole and its features like national income, employment, poverty, balance of payments and inflation.

Definition of Economics

Definition of Economics :

          The term economics comes from the Ancient Greek word oikonomia mean management of a household, administration. The term economic process refers to those activities, through which goods and services aimed at satisfying human needs, are producted, distributed and used.

          Economics includes the study of labour, land and investments of money, income and production and taxes and government expenditures.

          Adam Smith, regarded as the father of Economics, defines Economics as, “ The science relating to the laws of production, distribution and exchange.”