Some Aspects of Economics as a Subject

Although most students speak of Economics as a single subject when they enroll for economics tuition bukit timah, there are actually two main branches of economics – microeconomics and macroeconomics. Additionally, theorists further divide Economics into several schools of thought. In a broad sense Economics helps us understand the relationships between limited supply of resources and the demand for them, and how this supply and demand gets balanced. Let us now dig a little deeper and see what the differences of microeconomics and macroeconomics are.

As the name suggests, microeconomics deals with smaller parts of a country’s economy, like local markets, specific commodities etc. When an economist sturdies or discusses microeconomics, he or she is most often dealing with consumer buying behavior and constraints at individual level. Macroeconomics, on the other hand, deals with broader issues concerning the whole country or several countries, like inflation, international trade and commerce etc. Broader issues like employment, Government borrowing and fiscal prudence, banking etc. are all clubbed under macroeconomics.

Since the time jc economics Anthony fok began to be studies as a separate discipline, there have been different schools of thought regarding the treatment of the economic concepts and principles. The oldest branch of rigorous study is referred to as Classical Economics. It tries to explain how free market economies work and what are the forces which dictate price, demand, and supply movements in such an economic scenario.

Subsequently, more theories and concepts got added to the principals of Classical Economics. We began to understand the theory of maximization of utility of a commodity, and how individuals can be trusted to make rational choices when resources have to be prioritized. This was referred to as Neo Classical Economics.

The Great Depression in the 1930s gave rise to one of the most popular branches of Economic Theory – Keynesian Economics. This was the time when microeconomics began to be studied as a separate discipline. Additionally, Keynes also formulated a few principles to better understand macroeconomics.

When you enroll for a good jc economics tuition Singapore you are introduced to all these aspects of this very interesting subject.