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Question
Discuss the subject-matter of economics.
Discuss the subject-matter of economics.
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Solution
Economics is the study of how scarce resources must be used efficiently in order to satisy unlimited wants of individuals.
Traditionally, the subject-matter of economics has been studied under two branches i.e.,
(i) Microeconomics: This branch of economics studies the problems of individual units of an economy. Its main tools are demand and supply.
(ii) Macroeconomics: This branch of economics studies the economic problems at the level of an economy as a whole. It is concerned with determination of agrregate output and general price level in the economy. Its main tools are aggregate demand and aggregate supply.
Economics is the study of how scarce resources must be used efficiently in order to satisy unlimited wants of individuals.
Traditionally, the subject-matter of economics has been studied under two branches i.e.,
(i) Microeconomics: This branch of economics studies the problems of individual units of an economy. Its main tools are demand and supply.
(ii) Macroeconomics: This branch of economics studies the economic problems at the level of an economy as a whole. It is concerned with determination of agrregate output and general price level in the economy. Its main tools are aggregate demand and aggregate supply.
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