DIVISION OF ECONOMICS
Economics is divided into two divisions; the MICROECONOMICS and MACRO ECONOMICS
MICROECONOMICS
ANalyzes the details of economy.Typically,it deals with the study of the economic behavior of individual units,such as consumer,,frims and enterpreneurs which constitute a very small segment of the whole economy.
On the other hand MACROECONOMICS deals with the economic behavior of the whole economy or its aggregates.An aggregates is composed of individual units.Both of them are equally important. One cannot study the whole without studying the parts;neither can break down aggregates into components without knowing what components made up the aggregates.
MACROECONOMICS includes demand and supply,theory of consumer behavior,theory of the film,Economic effiency in consunption and production,and some application like policies to regulate pollution and consumer protection.
MIROECONOMICS includes national income aggregates,determination of equilibrium level of national income,monetary and fiscal policy,the Dynamics of Inflation and Unemployment,and Economics development.
METHODS OF ECONOMICS
1.POSITIVE ECONOMICS - An approach to economics that seeks to understand the behavior and the operation of system without judgement. It describes what exists and how it was works.
2.NORMATIVE ECONOMICS - AN approach to economics that analyzes outcome of economic behavior,evaluates them as good or bad,and may prescribe courses of action.It is also known as POLICY ECONOMICS.
remember the VALUES,SENTIMENT and SYMPHATHY..
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