Introduction to micro economics and macro economics

Features of microeconomics

Study of individual units, price theory, partial equilibrium, based on certain assumptions, slicing method, use of marginalism principle, analysis of market structure and limited scope.

Importance of macroeconomics

Functioning of an economy, economy fluctuations, national income, economic development. Performance of an economy, study of macroeconomic variables, level of employment.

Scope of macro economics

Theory of income and employment [theory of consumption function and theory of investment function (theory of business cycle)], theory of General price level and inflation, theory of economic growth and development, macro theory of distribution.

Importance of micro economics

Price determination, free market economy, foreign trade, economic model building, business decisions, useful to government, basis of welfare economics.

Features of macro economics

Study of aggregates, income theory, general equilibrium analysis, interdependence, lumping method, growth models, general price level, policy - oriented