BRANCHES OF ECONOMICS.

Hey Guyz, Happy Last day of the week. Happy Friday, It’s a lovely day don’t you agree?. Am just too grateful for life and Beauty.

Let’s get straight to work.

Economics can be grouped into two major groups namely: Micro- Economics and Macro- Economics.

MICRO-ECONOMICS.

Micro- Economics refers to the branch of economics that deals with smaller units/components of the economy. It is the branch of economics that studies the economic actions of individuals, firms and governments. It relates to cost, output, production, pricing and the marketing activities of households, firms and governments.

ADVANTAGES OF MICRO- ECONOMICS:

1. Better Understanding- Micro- economics helps in the better understanding of the
functioning of the various units/components of the economy.

2. Making of Policies- It also helps us to make and develop better policies that will improve the welfare of the people.

3. Knowledge of Vibrant Sector- The knowledge of micro- economics enables us to determine the vibrant sector of the economy.

4. Development of Economic Tools- its study helps us to develop sound economic tools used for interpreting/solving economic problems.

DISADVANTAGES OF MICRO- ECONOMICS:

1. Unreliability of Data- Data derived from the use of micro-economics are not always reliable for the same components/units.

MACRO- ECONOMICS.

Macro- economics refers to the branch of economics which deals with larger units/components of the economy. It is the study of aggregate, total income of the economy. It deals with large aggregates such as- Income, Inflation etc.

ADVANTAGES OF MACRO- ECONOMICS:

1. Full Employment- In Macro- economy, full employment is provided to a larger proportion of the population.

2. Even Distribution of Income- It helps to make sure that the wealth of the nation is not concentrated in the hands of few individuals or to certain sectors of the economy.

3. Balance of Payment- It also enables adequate balance of payment in the total economy.

4. Increase in Gross Domestic Product (G.D.P)- The study of macro- economics has resulted in the increase of the G.D.P leading to economic development.

5. Stability of Price- Price stability is obtained in macro- economics by minimizing price disturbances in the economy.

DISADVANTAGES OF MACRO- ECONOMICS:

1. Statistical Difficulties- The study of macro- economics makes statistical data difficult to analyze as a result of the grouping of macro- economic variables.

2. Negative Grouping of Data- In the analysis of macro- economics, data are being negatively grouped to be the same without considering the particular nature of each component of the economy.

OTHER BRANCHES OF ECONOMICS:

1. Pure Economics- This is concerned with the study of the laws and theories derived from the study of economic behaviour.

2. Applied Economics- This is concerned with the application of the laws and theories in analyzing and solving economic problems.

3. Mathematical Economics- This is concerned with the collection and analysis of data as well as statistics.

4. Monetary Economics- This involves the study of money and banking.

5. Business Economics- This is concerned with the study of trade, business organization and accounting.

6. Development Economics- This is concerned with the study of economic planning and national economics.

This concludes our session for today. Hope it was helpful and fun all the way. Remember that the key to being a better student is constant practice and this can only be achieved by Prayer. I pray that the grace to be consistent is released on you. Until we meet again remain ever blessed and remember you are for SIGNS & WONDERS. God Bless you.