This topic covers the following subtopics: Difference between Micro economics and Macro economics. Definitions of various concepts of national income including the idea of circular flow; injections and withdraws in open and closed economies. Income, expenditure, and output approaches to the measurement of the National Income. Problems of subsistence output. Problems of comparison between countries overtime. Per capita national income and welfare; uses of national income statistics. The distribution of income and wealth in East African countries. Arguments for and against uneven distribution of income and wealth.

Economics, is traditionally divided into two main branches namely:

(i)             Micro Economics.

(ii)          Macro Economics. Micro economics