Economics sub divisions are: 

(I) Consumption:

• Human wants coming under consumption is the starting point of economic activity.
• In this section the characteristics of human wants based on the behaviour of the consumer, the diminishing marginal utility and consumer’s surplus are dealt with.

(II) Production:

• Production is the process of transformation of inputs into output.
• This division covers the characteristics and role of the factors of production namely land, labour, capital and organization.

(III) Exchange:

• Exchange is concerned with price determination in different market forms.
• This division covers trade and commerce.
• Consumption is possible only if the produced commodity is placed in the hands of the consumer.

(IV) Distribution:

• Production is the result of the coordination of factors of production.
• Since a commodity is produced with the efforts of land, labour, capital and organization, the produced wealth has to be distributed among the cooperating factors.
• The reward for factors of production is studied in this division under rent, wages, interest and profit.
• Distribution studies about the pricing of factors of production.