What is economics? Some basic knowledge for 11th class students;

What is economics?

Economics is a great social science which deals with production , consumption and distribution of an economy.

Acc. to Robbins,”Economics is a science which studies human behaviour as a relationship between ends and scarce means which have alternative uses”
  

                                  

As we know the economic resources are limited and wants are unlimited,so here the problem of scarcity arises.

Being a rational person we have to choose the most important wants.

For example as a student I have 100 rupees and many things I can buy with that money.

But for a student books and study materials are more essential .

Economics tells us how to solve the problem of scarcity by choice.

Thus,Economics is called science of choice.

              

In class 11th and 12th level we study about two main branches of economics; here we give small knowledge of these branches for your better understanding.

Economics have two branches:

1: Microeconomics

2: Macroeconomics

Now we discuss about these two branches of economics;

1) Microeconomics

Micro means small.

Microeconomics gives knowledge about the economic activities of an individual.

Under this part of economics we studied about :

Individual demand and supply,

Individual consumption,

Individual income and output,

Price determination,

Economic welfare etc.
   

2) Macroeconomics

Macro means large.

Macroeconomics studies the behaviour of the whole economy.

The subject we studied in macroeconomics are:

National income and National output,

Aggregate demand,

Aggregate supply,

Full employment,

International trade,

Public finance,

Economic growth,

Trade cycle,

Money and banking etc .