Economics

What is Economic ?
Economics is the social science that studies the production, distribution, and consumption of goods and
services. Economics focuses on the behavior and interactions of economic agents and how economies
work.

Robbins' most famous book was An essay on the nature and significance of Economic science , one of
the best written prose pieces in economics. That book contains three main thoughts. First is Robbins’
famous all encompassing definition of economics that is still used to define the subject today :

“ Economics is the science which studies human

behavior as a relationship between given ends
and scarce means which have alternative uses. “

In simple words Economics can be define as ;

“Economics studies decision making
in view of many wants against
scarcity means.”

Importance / significance of the Economics :

• Economics provides a mechanism for looking at possible consequences as we
run short of raw materials such as gas and oil.

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• The free market leads to countless example of market failure. I feel one of
the best uses of economics is to provide solutions to overcoming market
failure.

• Modern economists have examined Economic forces behind everyday social

issues.

• Means of communication among people, incorporating a basic vocabulary or

logic that is so frequently encountered that the knowledge should be
possessed by everyone.

• Type of knowledge frequently needed and yet not susceptible to economical

purchase from experts.

• Economics is the important you get to know how societies , governments ,

businesses , households and individuals allocate their scarce resources.

• The economics can also provide valuable knowledge for making decisions in
everyday life.

• Economics is concerned with the optimal distribution of resources in society.

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Types of Economics :

There are two types of Economics

1. Micro Economics
2. Macro Economics

Economic

Micro Macro
Economics Economics

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 Micro Economics:

Microeconomics is the study of Economics at an individual , group or

company level.

Macro Economics :

Macroeconomics is the study of a national economy as a whole.

Note : for detail information about Micro

and Macro Economics go to home page
and look to Manu bar and click on subject
manu there is two droup down Manu 1.
Micro Economics and 2. Macro Economics.

Thanks.