“The social science that studies the choices that individuals, businesses, governments and entire societies make as they meet ‘scarcity’ (inability to satisfy all wants) is called Economics”. It has two types which are mentioned below:
1. Microeconomics: It is: “the study of choices that individuals and businesses make, the way these choices act together and the influence that governments put forth on individuals and businesses”. A couple of microeconomic questions are: Why are more people buying motorbikes and less people buying cars? How will a decline in air travel affect the manufacturers of airplanes?
2. Macroeconomics: It is: “the study of effects on the national economy and global economy of the choices that individuals, businesses and governments make”. Some macroeconomic questions are: Why did production and jobs reduce in 2001? Will a cut in tax increase the number of jobs and total production?