Reviewed by Aug 16, 2023
| Updated onCatalogue
Economics is defined as the study of production, distribution, and consumption of various goods and services. It studies the decisions made by nations, governments, businesses, and individuals in the allocation of resources to achieve the best return on investment.
Based on the level of focus, economics can be classified into two categories:
Macroeconomics: The study focuses on the behaviour of an overall economy. Microeconomics: The study concentrates on individual-level business behaviour.
Based on the level of focus, economics can be classified into two categories:
Macroeconomics: The study focuses on the behaviour of an overall economy.
Microeconomics: The study concentrates on individual-level business behaviour.
Macro-Economics:
Micro-Economics:
Most economists believe that it is the result of the microeconomic actions of individuals and businesses that lead to the phenomena of an overall economy.
Macroeconomics and microeconomics go hand-in-hand according to economists. Understanding the behaviour of the business at both the micro and macro-level can help us make better decisions in the allocation of resources.