ECONOMICS

Economics is the social science that analyses the production, distribution and consumption of goods and services. The origin of term 'Economics' is from the greek word 'Oikonomia', which has the meaning 'Home Administration'. The study of economics is known as 'Aphnology/Plutology'. It has the meaning of 'The Science of Wealth'. Adam Smith is the father of Modern Economics. He laid the clear foundation of Modern Economics. He is the pioneer of political economy. He wrote the first modern book on economics - 'Wealth of Nations'. Economics has two branches - Micro Economics and Macro Economics.

Micro Economics - Micro Economics is the branch of economics that deals with the personal decisions of consumers and entrepreneurs. It is also known as Price Theory. It is developed by Marshal, Ricardo and Pigou. Example - Income/ Expenditure/ Employment of a Person.

Macro Economics - Macro Economics deals with the larger aspects of nation's economy such as sectors of agriculture, industry and service. It is also known as General Theory or Income Theory. It is developed by J.M.Keynes. Example - The Total Income (National Income/ Gross Expenditure/ Gross Employment) of a Country.