Economics the social science which deals how can we manage the available resource effectively. The resource may be either human resource, machineries, food etc. People say india a growing economy, has anyone think what is the baseline to say indian economy is growing ? I didn’t know why. This is the main reason behind me to study the economics. From my research about the baseline to say indian economy is growing i got a terminology called GDP (gross domestic product). I will discuss more about GDP in next chapter. There is a pre-condition to understand what is economics ?, is the term scarcity.
Scarcity is an economical problem occur when peoples want is unlimited but resource is limited to fulfill all his / her needs. For an individual resource include time, money, skill etc. For a country resource include capital, technology, labor etc. So this is why i mentioned above that economics is the study to how to manage and allocate resource effectively. There are 2 branches in economics 1) Micro economics 2) Macro economics
Micro economics deals with the way how the individual and firms respond to a price changes and the way in which how they deal price change to cop them self. Meanwhile macro economics define the way in how nation can allocate limited resource to attain maximum production and thereby promote trade and growth of nation.