The Definition Of Economics And There Types

Economics is a social science that studies how people satisfy unlimited wants with scarce resources. It involves the analysis of choice and trade through the use of intuitive graphs and mathematical elements. The discipline is divided into two sections: microeconomics and macroeconomics.

Microeconomics studies small-scale economies. That is, from the individual level on up to the industry level. Microeconomics is concerned with how consumers and producers come together to exchange goods and services, how much is produced, what to produce, and the going prices. It focuses on the actions of individuals and firms.

Macroeconomics is the branch that studies large-scale economies. Macroeconomics observes and analyzes how entire countries, full of many industries and consumers, function. It is not simply the sum of many "microeconomics"; many of the concepts are entirely different. Where micro will study a single consumer, a manufacturing plant or the airline industry, macro studies the entire economy within which those three exist. Some of the elements of a large economy that macroeconomics considers include inflation, government policies, output growth, and unemployment.

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