Branches of Economics

  • Micro Economics: This is the branch of economics that studies the economy in units, e.g individual consumers, households and firms. It is concerned with the pattern and structure of individuals, firms and industries.
  • Macro Economics: This is the branch of economics that studies the economy as a whole e.g aggregate demand, national income, investment, unemployment, the balance of payments, etc.
  • Positive Economics: This is an approach to economic analysis that is scientific in nature. It uses tested economics theories for analysis and economic predictions.
  • Normative Economic: This aspect of economics entails analysis economic issues or situation on the basis of opinions and not generally accepted theories. it is based on value judgment.