Dismal science is also called as Economics. And it refers to "a science which deals with the production, distribution and consumption of wealth" where it assumes that people are Rational. Economics has two major divisions mainly as a) Micro Economics
b)Macro Economics
a)Micro Economics : It states the economic tendencies. It deals with individual units like, individual consumers,firms, hospitals, households, industries human actions where there decisions affects the whole organization, utilization and distribution of scarce resources. But at some points it is said that micro economics is the most advanced and useful method when compared with the macro economics. And micro economics is all about theories which are static. The main objective of micro economics is to explain the principles, problems and policies related to optimum allocation of resources.
Example :1) How a district or a city decides to use the government funds for there growth.
2)Production of cigarettes from local business partners
b) Macro Economics : It studies the economic behavior decisions as a whole. It examines the behavior of overall income, expenditure, savings and overall level of prices. It deal with the whole interactions. Here every individual contribute as a whole with dynamic behavior. It is stated that "Everyone's expenditure is someone else's receipt. Every transactions must have two sides".
Example : 1) The recent decision of External commercial borrowings to keep the interest stable.
2) Government policies that are being implemented every now and then in the country.
b)Macro Economics
a)Micro Economics : It states the economic tendencies. It deals with individual units like, individual consumers,firms, hospitals, households, industries human actions where there decisions affects the whole organization, utilization and distribution of scarce resources. But at some points it is said that micro economics is the most advanced and useful method when compared with the macro economics. And micro economics is all about theories which are static. The main objective of micro economics is to explain the principles, problems and policies related to optimum allocation of resources.
Example :1) How a district or a city decides to use the government funds for there growth.
2)Production of cigarettes from local business partners
b) Macro Economics : It studies the economic behavior decisions as a whole. It examines the behavior of overall income, expenditure, savings and overall level of prices. It deal with the whole interactions. Here every individual contribute as a whole with dynamic behavior. It is stated that "Everyone's expenditure is someone else's receipt. Every transactions must have two sides".
Example : 1) The recent decision of External commercial borrowings to keep the interest stable.
2) Government policies that are being implemented every now and then in the country.
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