Скачать или смотреть 1.2 Branches of Economics

Branches of Economics
Economic Growth and Major Branching
• Rapid growth in economics, encompassing various themes.
• Emergence of new branches including development, environmental, industrial, international, labor, mathematical, monetary, welfare, resource, behavioral, experimental, and health economics.
• Modern economics
microeconomics and
macroeconomics.
Microeconomics
• Focuses on individual decision-making units like households, firms, and governments.
• Explores their interactions and decisions in markets and industries.
• Covers economic activities of consumers, producers, firms, and industries.
• Examines income determination and product pricing.
• Fundamental problem is resource allocation or price-determination.

• Modern economics
microeconomics and
macroeconomics.
Microeconomics
• Focuses on individual decision-making units like households, firms, and governments.
• Explores their interactions and decisions in markets and industries.
• Covers economic activities of consumers, producers, firms, and industries.
• Examines income determination and product pricing.
• Fundamental problem is resource allocation or price-determination.
Macroeconomics
• Examines the effects and consequences of aggregate behavior of decision-making units in an economy.
• Examines interrelations among various aggregate economic variables like employment, output, national income, investment, and consumption.
• Investigates the determination and causes of these variables' fluctuations over time.
• The fundamental problem of macroeconomics is the full utilization of economic resources.

Modern economics
microeconomics and
macroeconomics.
Microeconomics vs Macroeconomics
• Microeconomics studies individual decision-making units like households and businesses.
• Macroeconomics studies an economy as a whole, focusing on broad, economy-wide aggregates.
• For instance, studying commodity price determination in a market is micro-analysis, while studying the general price level of commodities over time is macro-analysis.
• Both are complementary, meaning macroeconomics cannot be studied independently of microeconomics.

Activity 1.2
1. Make a distinction between microeconomics and macroeconomics.
2. Explain the fundamental problems of microeconomics and macroeconomics?

Microeconomics focuses on individual economic agents such as households, firms, and industries, analyzing their behavior and decision-making processes.
Macroeconomics, on the other hand, studies the economy as a whole, looking at aggregates such as national income, unemployment rates, and inflation.
2. The fundamental problems of microeconomics include:
What goods and services should be produced?
How should these goods and services be produced?
For whom should these goods and services be produced?
The fundamental problems of macroeconomics include:
How to achieve full employment in the economy?
How to achieve price stability and control inflation?
How to achieve sustainable economic growth?