Areas of economics

There are three main approaches to economics: microeconomics, macroeconomics, and development economics.

Microeconomics focuses on individual economic units. The economic behaviour of either individual consumers or firms or industries is studied by microeconomics. The distribution of products and income among all these units is also analyzed by microeconomics. In this field of economics individuals are considered both suppliers of labour and as consumers of goods. Firms are also studied both as suppliers of products and as consumers of labour and capital.

There was along period in the 19th and early the 20th centuries when microeconomic questions dominated in economics. In the 20^th century economists’ interest in forces that affect income, employment and price grew. They considered economy in all its relationships.

The term “macroeconomics” was first used in the 1930s. The world depression that began in1929 required the study of such macroeconomic questions as achievement of full employment and economic growth by means of proper government policy.

The third main field of economics, that is, development economics, studies the factors of economic growth and how these factors are used by governments in order to achieve high living standards.

Notes

economic unit – экономическое образование to consider - рассматривать

behaviour - поведение by means of - посредством