The two major branches are _
(i) Microeconomics
(ii) Macroeconomics
(i) Microeconomics:
The branch of economices that studies the behavior of an individual consumer,
firm, family is known as the price theory. It is narrow in scope and interprets
the small constituents of the entire economy. Microeconomics deals with
individual part of the different values. It is applied to operational or
internal issues. It helps in devoloping policies appropriate resource
distribution at firm level.
Example:
Individual Demand, Price of a product etc.
(ii) Macroeconomics:
The branch of economics that studies the behavior of the whole economy is known
as Macroeconomics. It is also known as the income theory. It has a wide scope
and interprets the economy of a country as a whole. Macroeconomics deals with
different economics variable in aggregate sense. It helps in developing
policies appropriate resource distribution at economy level such as inflation,
unemployment level etc.
Examples:
Aggregate demand, National income etc.
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