(ii) Mode of their production (how they are produced) (iii) How the goods should be distributed? Thus, Micro-Economics deals with the theory of the firm and behaviour and problems of individuals and firms.It is concerned with pricing theory, demand concepts and theories of market structure. Macro-Economics is concerned with such economic variables as the aggregates output of an economy, extent to which the resources are employed, the level and determination of national income, balance of payment etc.Macro-economic examines the aggregates and averages of economic variables which included study of money, banking and financial institutions, general price levels, inflation theory of employment, income distribution, monetary and fiscal policies and problems of economic stabilisation.
Business includes activities such as farming, mining, manufacturing, banking, trading, insurance, transport, construction and warehouse etc. Concept of Business Economics: Business Economics was attached different meanings in accordance with the objectives set.
According to one school of thought, business economics was conceived as an activity aimed at profit maximisation.
There are many examples of Applied Economics such as Industrial Economics, Managerial Economics and Agricultural Economics.
In descriptive economics actual facts about a particular economic subject for the aim of study.
Though the wants and needs of every economy have growth many folds; population and labour force have increased; sources and techniques of production have improved; infrastructural facilities have improved; facilities of research and development have developed; new natural resources have been explored; both the physical and human resources have grown; and production capacity of modern economies has grown tremendously, yet the growth in production and income has not been smooth.
Therefore, economics has to explore and exploit the available resources of economic growth and to employ them for the economic growth of the country.Wants and needs of every society are unlimited while the resources available with society to satisfy these wants and needs are limited and these limited resources too have alternative uses.Therefore, the society has to decide the goods and services to be produced with these resources and also the quantity in which these goods and services should be produced so that maximum possible wants of society may be satisfied.It has also to ensure that the available resources are efficiently utilised for the economic growth and welfare of country. Economics is to analyse the causes of these problems and to suggest a number of alternative courses which may help in tackling these problems.Economics is also concerned with the increase in productive capacity of scarce resources and the rate of growth of economic development. According to Stonier and Haugue the subject matter of economics includes the following: The theoretical part of economics is economic theory.It is a systematic collection, classification and analysis of facts. Poincere, “Science is built up of facts as a house is built up of stones, but an accumulation of facts is no more a science than a heap of stones in a house.” Thus, following are the essentials of science: (i) A systematic study of facts, (ii) Certain rules and principles, (iii) Rules and principles of science are based on causes and effects, and (iv) Rules and principles of science are universally applicable. Scholars, who argue that economics is a science, put the following arguments in favour of their opinion: 1. Economic facts are analysed on the basis of these laws and principles. It Establishes Relationship between Causes and Effects: Economics establishes relationship between the causes and effects of economic events. Universality of Laws and Principles: Laws and principles of economics are universal.Systematic Study of Facts: Economics involves the systematic collection, classification and analysis of facts. Such relationship facilitates economic forecastings. They hold true in almost all the countries at all the times and in all the circumstances. Some scholars argue that economics is not a science.In other words, the society has to decide how to make the best and most efficient use of available resources.Modern view of economics is not confined only to the allocation of resources but is also concerned with the development of these resources.Managerial Economics: Managerial economics can be viewed as an economics applied to problem solving at the firm level.Managerial economics deals with integration of economic theory with business practices for facilitating the decision making planning process by management.