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Earlier, the scope of economics was limited to the utilisation of scarce resources to meet the needs and wants of people and society.
Table of Contents
Scope of Economics
Over the years, the scope of economics has been broadened to many areas, which are shown in Figure
This is considered to be basic economics. Microeconomics may be defined as that branch of economic analysis which studies the economic behaviour of the individual unit, maybe a person, a particular household, or a particular firm.
Macroeconomics may be defined as that branch of economic analysis which studies the behaviour of not one particular unit, but of all the units combined together. Macroeconomics is a study in aggregates.
With the advent of globalisation and cross-border integration, economic concepts are applied in order to conduct successful business dealings between countries. Economic concepts can be used in areas, such as foreign trade (exports and imports), foreign exchange (trading currency), the balance of payments, and balance of trade.
Economic concepts are also applied to assess the government’s collection of taxes from the users of public goods as well as expenditure on production and distribution of these goods to the general public.
Economic theories and concepts are used to analyse the growth and development of low-income countries. This helps in improving the living standard of people in less developed and developing societies by understanding their needs for various facilities and utilities, such as health and education facilities and good working conditions.
Economic concepts are also applicable in assessing the problems faced in promoting health in different countries. These concepts help the government in making decisions for defining appropriate health packages and programs for the general public.
Economic concepts are used to analyse the utilisation and depletion of natural resources. Moreover, they are applied to study the impact of increasing ecological imbalance on society.
Urban and rural Economics
In urban development, the scope of economics covers the analysis of different urban issues such as crime, education, public transit, housing, and local government finance. On the other hand, in rural development, economics can be used to analyse the shortage of natural resources, obtain the best price for production, study constraints of productivity, adapt to climate change, etc.
People also ask – Economics
Economics is the study of how we choose to use limited resources with alternative uses to obtain the maximum satisfaction of unlimited human wants.
In the meaning of economics, the term ‘Economics’ owes its origin to the Greek word ‘Oikonomia’, which can be divided into two parts: oikos means home and nomos means management.
Nature of economics is broadly categories into 3 types: economics as a science, economics as an art and economics as a social science.
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