Economics
1. Distinguish between Micro economics and Macro economics.
Microeconomics may be defined as that branch of economic analysis, which studies the economic behavior of the individual unit, maybe a person, a particular household, or a particular firm. It is a study of one particular unit rather than all the units combined together. In microeconomics, we study the various units of the economy, how they function and how they reach their equilibrium. An important tool used in that of microeconomics is that of Marginal Analysis. In fact, it is an indispensable tool used in microeconomics. Some of the important laws and principles of microeconomics have been derived directly from marginal analysis. The following are the fields covered by microeconomics:
• Theory of Product pricing with its two constituents, namely, the theory of consumer behavior and the theory of production and costs.
• Theory of Factor pricing.
• Theory of Economic Welfare.
Microeconomics
Those who have studied Latin know that the prefix “micro-“ means “small,” so it shouldn’t be surprising that microeconomics is the study of small economic units. The field of microeconomics is concerned with things like:
• Consumer decision making and utility maximization
• Firm production and profit maximization
• Individual market equilibrium
• Effects of government regulation on individual markets
• Externalities and other market side effects
Micro Economics:
1. Micro Economics studies the problems of individual economic units such as a firm, an industry, a consumer etc.
2. Micro Economic studies the problems of price determination, resource allocation etc.
3. While formulating economic theories, Micro Economics assumes that other things remain constant.
4. The main determinant of Micro Economics is price.
Macro Economics may be defined as that branch of economic analysis which studies the behavior of not one particular unit, but of all the units combined together. Macroeconomics is a study of
Microeconomics may be defined as that branch of economic analysis, which studies the economic behavior of the individual unit, maybe a person, a particular household, or a particular firm. It is a study of one particular unit rather than all the units combined together. In microeconomics, we study the various units of the economy, how they function and how they reach their equilibrium. An important tool used in that of microeconomics is that of Marginal Analysis. In fact, it is an indispensable tool used in microeconomics. Some of the important laws and principles of microeconomics have been derived directly from marginal analysis. The following are the fields covered by microeconomics:
• Theory of Product pricing with its two constituents, namely, the theory of consumer behavior and the theory of production and costs.
• Theory of Factor pricing.
• Theory of Economic Welfare.
Microeconomics
Those who have studied Latin know that the prefix “micro-“ means “small,” so it shouldn’t be surprising that microeconomics is the study of small economic units. The field of microeconomics is concerned with things like:
• Consumer decision making and utility maximization
• Firm production and profit maximization
• Individual market equilibrium
• Effects of government regulation on individual markets
• Externalities and other market side effects
Micro Economics:
1. Micro Economics studies the problems of individual economic units such as a firm, an industry, a consumer etc.
2. Micro Economic studies the problems of price determination, resource allocation etc.
3. While formulating economic theories, Micro Economics assumes that other things remain constant.
4. The main determinant of Micro Economics is price.
Macro Economics may be defined as that branch of economic analysis which studies the behavior of not one particular unit, but of all the units combined together. Macroeconomics is a study of