Economics does not just deal with the economics of a society, but also looks into how people interact with money and the economy. There are two main sections in any economics course and they are micro and macro economic theory and all students of economics will know these terms well in no time at all.

Main Theories

Microeconomic theory studies the behaviour and activities of households and businesses and how they make decisions regarding the allocation of what is economically defined as scarce resources. From this point microeconomics studies how supply and demand of products has an influence on price. These are age old concepts that are continually adapted to a rapidly changing world. More typically macroeconomics is holistic and not only encompasses such terms as “scarcity” but handles every day issues such as unemployment, taxation and economic growth. Microeconomics is fully awake when determining what effects a change in taxation policy will have on the economy.

Economics is not a stand alone subject, but includes statistics, mathematics, sociological and political features of Economics as well as Britain’s economic history which is an indication of why we stand where we are today.

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