Economics is the study of how society uses its scarce resources to create value. Like suppose India has limited resources to distribute among consumers, but the problem is that consumers are unlimited or we can say that RESOURCES < CONSUMER, now how to manage this problem, so here the word comes “economics” Which explains how to manage these things. This is known as economics.
Easy Definition From Book
“Economics is a study of goods and services where all the resources are distributed and consumed in a territory is known as Economics“
Types of Economics
There are two types of economics:
- Micro Economics
- Macro Economics
Well, do you know that before 1929 there were no types of economics, the reason for splitting into two types of economics was “The Great Depression” which was started during 1930s. We’ll dicuss this thing on another blog, for now let’s see “what is micro and macro economices?”
Micro economics is a micro part of economices where all the studies mainly focuses on individuals e.g. Individual market, local businesses, enterprises, effect on price of goods etc. It is known as “Micro Economics”
Macro Economics is a macro/broad part of economics where all the studies mainly focuses on over the whole economy e.g. Inflation, Economic Output, National Income, Employment/Unemployment, etc. This is known as “Macro Economics”.