Economics could be ascientific disciplinethat studies the manner a society chooses to use its restricted resources, that have various uses, to provideproduct and services and to distribute them among completely different teams of individuals. it’s a science that analyses the selectioncreating economic behaviour.
Economics is distribute in two parts:-
- Micro economics: The term ‘micro’ is derive from Greek word ‘mikros‘ which means ‘small’. So, Microeconomics is the study of individuals, households and firms’ behavior in decision making and allocation of resources. It by and large applies to business sectors of products and ventures and manages individual and financial issues. In this way, it is additionally recognizable as Price Theory. Since its significant topic manages the assurance of cost of wares and factors. For example- Study of price determination in the commodity market, Study of consumer equilibrium.
- Macro economics: The term ‘macro’ is derive from Greek word ‘makros‘ which means ‘large’. So, Macroeconomics is a branch of economics that studies how an overall economy the market systems that operate on a large scale industry. Moreover macroeconomics studies economy-wide event such as inflation, price levels, rate of economic growth, national income, gross domestic product (GDP), and changes in unemployment. For example- Study of price behaviour in India, Study of unemployment in India.
Central problem of an economy in Economics
- What to produce? This studies it is basically the problem of selection of commodities and their quantities to be produced. There is a restricted asset, and in this way makers can’t deliver every one of the merchandise, in an economy.
- How to produce? This investigations how to arrange generation. It is the second basic economic problem of resource allocation. Moreover it is concerned with the choice of technique production. For example, production of cloth is possible either by modern machines.
- For whom to produce? This studies it is concerned with the distribution of income among its various factors of production. So, this problem refers to selection of the category of people who will ultimately consume the goods that is whether the economy will produce goods for more poor and less rich or for not so much poor but rather more rich. Since no economy can fulfill all needs of its kin, issue of decision emerges.