What are the branches of Economics? – meaning and explanation
Economics is divided into two main broad areas namely;
- Micro-economics and
- Macro-economics.
What is Micro-economics?Micro-economics is the study of the small units of the economy. Mikros is a Greek word which means small. Micro¬economics therefore involves the analysis of me decisions of the basic decision-making units of Households, firms and governments. For instance, how an individual or a household earns income and how the income is spent are examples of micro-economics.
What is Macro-economics?
Macro-economics on the other hand deals with the aggregate economic problems of the of the society at large. Makros is the Greek word for large. Macro-economics therefore studies such topics as inflation which is concerned with the level of prices and as it affects everybody in the society, national income aggregate level of unemployment, etc.
Economics can also be classified into pure and applied categories.
Pure Economics involves a body of laws, theories or principles derived from the study of economic behaviour.
Applied Economics is concerned with the use of law, theories or principles in toe analysis and solving of contemporary economic problem. There are other branches of Economics like: Monetary Economics which deal with money and banking: Public Finance which is about taxation, public revenue and expenditure: Business Economics which pea s with trade, business organization and accounting: Development Economics that that handles economic planning or development plan and national economies: Mathematical Economics or Econometrics which deals with data collection, analysis and statistics; demography that deals with population issues: Industrial Economics which talks about personnel management, labour and industrial relations, etc.
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