In this approach study of economics is divided into Microeconomics and Macroeconomics.<\/b><\/span><\/p>\n

Micro economics<\/span><\/b><\/p>\n

The word \u2018micro\u2019 was derived from the Latin word \u2018Mikros\u2019 which means small. <\/span><\/p>\n

The study of small or individual economic activities is the microeconomics. <\/span><\/p>\n

It is also known as price theory because we study about price determination process of individual firms, individual industries and pricing of factor of production under microeconomics. <\/span><\/p>\n

Assumptions are made in microeconomic theories, other things remaining same are assumed in each of the microeconomic theories. <\/span><\/p>\n

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Macroeconomics<\/span><\/b><\/p>\n

The word \u2018Macro\u2019 was derived from the Latin word \u2018Makros\u2019 which means large or whole. <\/span><\/p>\n

Macroeconomics is the study of aggregate economic variables as a whole. <\/span><\/p>\n

It studies about national income, price level, employment level, money, economic growth rate etc. <\/span><\/p>\n

National income, aggregate consumption, aggregate savings, aggregate investment etc. are related to the whole economy.<\/span><\/p>\n

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Business economics <\/span><\/b><\/p>\n

Business economics is also known as managerial economics.<\/span><\/p>\n

Basically, it is an applied economics in the field of business management. <\/span><\/p>\n

It\u00a0is the integration of economic theory with business practice for the purpose of facilitating decision making and forward planning by management.<\/span><\/p>\n

Generally, business economics refers to the integration of economic theory with business practice.<\/span><\/p>\n

While the theories of economics provide the tools, which explain various concepts such as demand, supply, costs, price, competition etc.<\/span><\/p>\n

Business Economics\u00a0applies these tools in the process of business decision making.<\/span><\/p>\n

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Limitations of Economics<\/span><\/b><\/b><\/h3>\n

The limitations of economics clarify the scope of economics. <\/span><\/p>\n

The limitation of economics is shown below:<\/span><\/p>\n

Study of activities related to wealth only<\/span><\/b><\/p>\n

Economics deals with the activities related to the wealth only. <\/span><\/p>\n

Non-economic activities do not fall under the scope of economics in the view of classical economists.<\/span><\/p>\n

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Study of social man<\/span><\/b><\/p>\n

Economics studies the activities of social man only that means the activities of the persons like Robinson Crusoe is not studied in economics in view of Marshall.<\/span><\/p>\n

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Study of normal man<\/span><\/b><\/p>\n

Economics studies the behavior of rational man only. <\/span><\/p>\n

The activities of irrational and abnormal man like drunkards, gamblers, drug addiction etc. do not fall under the scope of economics.<\/span><\/p>\n

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Study of scarce commodities<\/span><\/b><\/p>\n

Economics studies only the scarce goods. <\/span><\/p>\n

According to Robbins only those goods or services which are insufficient to us is studied in economics that is free goods which are sufficient are not studied in economics.<\/span><\/p>\n

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Study of real man<\/span><\/b><\/p>\n

In economics we study about the activities of real man only. <\/span><\/p>\n

The activities of fictitious and imaginary persons like god, witch, ghost etc are not studied in economics.\u00a0 <\/b><\/span><\/p>\n

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Other things being equal<\/span><\/b><\/p>\n

Economic theories are based on the assumptions of other things remaining same in microeconomics. <\/span><\/p>\n

Economic theories are not applicable when other things do not remain constant.<\/b><\/span><\/p>\n

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Economic laws<\/span><\/b><\/p>\n

Economic laws are scientific laws. <\/span><\/p>\n

But they are not exact as pure science because man is affected by nature, environment, habit customs etc. <\/b><\/span><\/p>\n

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\u091c\u092f \u0917\u0942<\/span>\u0917<\/span>\u0932<\/span>, <\/span>\u091c\u092f \u092f\u0941\u091f\u094d\u092f\u0941\u092c<\/span>, <\/span>\u091c\u092f \u0938\u094b\u0936\u0932 \u092e\u093f\u0921\u093f\u092f\u093e<\/span><\/span><\/p>\n

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\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

    Introduction of Economics The word economics was derived from Greek words \u2018Oeconomicus\u2019 in 431 B.C. by Xenophone. It means household management or management of household affairs. \u00a0 The economics science was born with the publication of Adam Smith\u2019s book \u2018An enquiry into the Nature and Causes of Wealth of Nations\u2019 in 1776 AD. […]<\/p>\n","protected":false},"author":19997,"featured_media":4708,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2217,2216,11],"tags":[1256,1274,2221,1272,1273,2220],"writers":[2219],"yoast_head":"\n