Economics is divided into two different categories: Micro economics and Macro economics.
Micro Economics
Firstly microeconomics (from Greek prefix mikro- meaning “small”) is a branch of economics that studies the behavior of individuals and firms in making decisions regarding the allocation of scarce resources. “The interactions among these individuals and firms”
Secondly microeconomics is the study of individuals, households and firm’s behavior in decision making and allocation of resources. It applies to markets of goods and services and deals with individual and economic issues.
Definition
Microeconomics is the study of individuals, households and firms’ behavior in decision making and allocation of resources. In addition it applies to markets of goods and services and deals with individual and economic issues.
Macro Economics
The term “macro” was first used in economics by Ragnar Frisch in 1933. However, it originated in the 16th and 17th century mercantilists as a methodological approach to economic problems.
In the 18th century, Physiocrats adopted it in the table economy, demonstrating a “wealth cycle” (i.e., net production) among the three classes represented by the peasant, landowner, and barren classes.
Malthus, Sismondi and Marx in the 19th century dealt with macroeconomic issues. Walras, Wicksell and Fisher contributed modernly to the development of pre-Keynes macroeconomic analysis.
Certain economists such as Kassel, Marshall, Pigovian, Robertson, Hayek, and Hortley developed the Quantity Theory of Money and General Price Theory in the decade following World War I.
But Keynes, who eventually developed the general theory of income, output, and employment in the wake of the Great Depression, has credit.
Firstly, Economics is a science that deals with the production, exchange and consumption of various goods in the economic system. in addition it is a scarce resource that can lessen the abundance of human welfare. Secondly, the central focus of Economics lies in the choice between resource scarcity and its alternative uses. In conclusion, the word “economics” is derived from two the Greek words oikos (House) and nemein (to manage) mean to manage the household budget “using the limited funds possible.
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