Economics is not a clearly defined discipline. Its frontiers are subject to constant change, and their definitions frequently give rise to controversy. A commonly used definition characterises economics as the study of the use of limited means for the achievement of alternative ends. More specifically, economics may be defined as a social science which covers the actions of individuals and groups of individuals in the process of producing, exchanging and consuming goods and services.
Like most other disciplines, economics is divided into branches and sub-branches. The major branches are microeconomics, which is the study of the economic actions of individuals and well-defined groups of individuals, and macroeconomics, which is the study of broad aggregates such as total employment and national income. This paper will deal entirely with the former branch.
To continue with the theme of the frontiers of economics being blurred, it may be added that mathematics is gradually achieving importance in economics. Mathematics, when applied to economics, is not an end in itself, but rather a set of tools which facilitates the derivation and exposition of economic theories.…
