valuable commodities & distribute them among different people.
According to Adam smith, “Economic was concerned with” An entity into the nature & cause of wealth of nations.”
According to Lord J.M. Keynes, “Economics studies hoe the levels of income & employments in a community are determined.
More recently the theory of economics is the theory of economic growth has come to occupy an important place in the study of economics with reference to under development economics. It studies how the national income grows over years of monsoons needs economic stability besides economic growth. Thus a study of economics growth and of economic stability forms an integral important part of the study of economics. A good and adequate definition of economics must cover them.
The word micro means a millionth part. It is some important part or component of the whole economy that we are analysis. So, microeconomics is the study of choice made by individuals and business and the influence of government on those choices. In, the circular flow of economic activity in the community micro-economics studies the flow of economic resources or factors of production from the resources owners to business firms & the flow of goods and services from the business firm to households. It studies the composition of such flows and how the prices of goods & services in the flow & determined.
The word macro means it is some important part or component of the whole economy that we are analysis. So, macroeconomics is the study of the effects on the national economy and the global economy of the choices that individuals business and government make.
In macro economics, we study, as if were the forest whereas in micro – economics we study the trees. Macro – economics is concerned with aggregates and averages of the entire economy, such as national income, aggregate output, total employments, total consumption, savings and investment, aggregate demand, aggregate supply, general’s levels of prices etc.
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