Scope of economics

          Scope of Economics 

The scope of economics can be mainly classified into two categories :- 

1- Macroeconomics 

2- Microeconomics

              1- Macroeconomics 

An economics in which we study about economic functioning and it's performance , decision making , and structure is known as macroeconomics . 

                        For macroeconomics following factors are studies - 

(i)- Output and income 

(ii)- Unemployment 

(iii)- Inflation and deflation 

(i)- Output and Income :- The total income that generates from the sold commodity is known as output . There are following factors which can affect the rise in output - 

(a)- Technological advancement 

(b)- Human capital 

(c)- Better education 

(ii)- Unemployment :- The ratio of workers without employment in the workplace is known as unemployment . But the people who are pursuing their education and retired are excluded from this employment rate .                                                                                                  In an area if there are unemployment workers are more then the production cost will low for a product . On the other hand , If the unemployment workers are no more in that area then the production cast of an product will be high . 

(iii)- Inflation and Deflation :- If the price of a product will increases then it is known as inflation . On the other hand If the price of a product will decreases then it is known as deflation . 

          2-Microeconomics 

An economics in which we study about , how a person earns and spends his income is known as microeconomics . 
     For microeconomics following factors studies -
1- Elasticity 
2- Theory of Production 
3- Cost of production 
4- Monopoly 
5- Economics of information 
6- Oligopoly 

1- Elasticity :- Elasticity is used to determine the ratio of change in the proportion of one variable to the change in the proportion of another variable . 

2- Theory of Production :- In the theory of production we study about how much input is converted to output efficiently . 

3- Cost of Production :-  According to cast of production , the price of object is determined by the price of resources like land , labour , capital and tecknology . Due to these factors the cost of any product will increases and decreases . 

4- Monopoly :- When a single seller faces no competition and selling a unique product in the market , is known as monopoly . If there is two firms in the market then this is known as  duopoly . 

5- Economics of Information :- In economics of information we study about how information can affect the economic decision.

6- Oligopoly:- When more than two seller or firms faces coimpitition and selling a identical product in the market is known as oligopoly .