There are two branches of Economics:

• Micro economics
• Macro economics

Micro Economics

It is the branch of economics which deals with smaller units of economy. Example: A firm, a plant, an industry, an individual producer etc. It is concerned with the analysis of the basic decision making components of household, individuals, firms and governments. It relates to cost, output, production and marketing activities of households, firms and government.

Macro Economics

It deals with larger units or aggregate of the economy. It considers the behavior of the economy as a whole. It deals with agreeable such as national income, inflation, unemployment, money and banking etc.