WHAT IS ECONOMICS?
Economics is not a natural science, i.e. it is not concerned with studying the physical world like chemistry, biology. Social sciences are connected with the study of people in society. It is not possible to conduct laboratory experiments, nor is it possible to fully unravel the process of human decision making.
“Economics is the study of how we the people engage ourselves in production, distribution and consumption of goods and services in a society.”
The term economics came from the Greek for oikos (house) and nomos (custom or law),hence "rules of the household. Economic basically divided into to parts
Micro Economics:
The branch of economics that studies the parts of the economy, especially such topics as markets,
prices, industries, demand, and supply. It can be thought of as the study of the economic trees, as
compared to macroeconomics, which is study of the entire economic forest. Microeconomics is a branch of economics that studies how individuals, households, and firms make decisions to allocate limited resources typically in markets where goods or services are being bought and sold. It also examines how these decisions and behaviors affect the supply and demand for goods and services, which determines prices, and how prices, in turn, determine the supply and demand of goods and services.
Macro Economics:
The branch of economics that studies the entire economy, especially such topics as aggregate production, unemployment, inflation, and business cycles. It can be thought of as the study of the economic forest, as compared to microeconomics, which is study of the economic trees. Macroeconomics, involves the "sum total of economic activity, dealing with the issues of growth, inflation, and unemployment and with national economic policies relating to these issues” and the effects of government actions (e.g., changing taxation levels) on them.
