Short Notes on Economics for SSC AAO E-Book

Short Notes on Economics for SSC AAO E-Book:- The term economics is derived from the ancient Greek word oikonomia, which means “management of a household”. Adam Smith defined economics “as the study of the nature and causes of the generation of wealth of a nation”. The subject matter of economics has been divided into two parts: Microeconomics and Macroeconomics. These terms were first coined and used by Ragnar Frisch and have now been adopted by economists all over the world.



Microeconomics:- Microeconomics occupies a vital place in economics and it has theoretical and practical importance. It is microeconomics that tells us how a free-market economy with its millions of consumers and producers works to decide about the allocation of productive resources among thousands of goods and services.


Short Notes on Economics for SSC AAO E-Book

Microeconomics analysis is also usefully applied to the various applied branches of economics such as Public Finance and International Economics.


Macroeconomics:- Macroeconomics analyses the behavior of the whole economic system in totality or entirety, such as total employment, national product or income, the general price level in the economy. Therefore, macroeconomics is also known as “aggregative economics”.





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