Microeconomics
Microeconomics is a branch of economics studying the behaviour of an individual economic unit. Adam Smith is known as the father of economics and microeconomics. Microeconomics help in contemplating the attributes of different decision-makers in an economy like individuals, enterprises, and households. In simple terms, microeconomics help in understanding why and how different goods have different values, how individuals make certain decisions, and how they cooperate with each other.
Economics
Economics is the study of a way in which a society decides or chooses to use limited resources with alternate uses for the production of goods and services and to ultimately distribute the product among different sections of the society. Simply put, economics is about choosing among different alternatives in the presence of scarcity. It aims to ensure that the resources are used in the best possible manner.
Why Economics is considered as a social science?
The term science stands for a systematic and organised body of knowledge. Economics is also a science as it is a systematic and organised study of the economic behaviour of human beings. But, it is not an exact science like Physics and Chemistry as it deals with the study of human behaviour. Therefore, it is known as social science.
Positive Economics and Normative Economics
Positive economics is the study of the facts of life. It means that it deals with the real life economic problems as they are and how these problems are solved.
However, normative economics deals with finding out solutions to economic problems. Simply put, it answers the question of ‘what ought to be done.’
Economics is further divided into many subjects, like in school we have Microeconomics, Macroeconomics, Statistics for Economics, Indian Economic Development, etc.