Question

Into how many parts is the subject matter of economics divided?

Answer 1

1)On the basis of defination

2) Modern approach

3) Traditional approach

Answer 2

Ragnar Frisch has divided the study of economics in two parts.

• In 1933, the whole Economics has been divided into two parts as Micro Economics and Macro Economics by Ragnar Frisch.

• Micro and Macro words are derived from two Greek words 'mikros' and 'makros' which means small and large respectively.

• Micro economy studies the actions of small businesses. It mainly deals with a specific business or individual.

• Macro Economics studies the actions of the whole economy but not a single unit It deals with National income, poverty, unemployment, etc.