basic problems of microeconomics
ECNOMICS:
Economics is the social science that analyzes the production, distribution, and consumption of goods and services. Different economists has given different definations of economics.
The philosopher Adam Smith (1776) defines the subject as "an inquiry into the nature and causes of the wealth of nations.
According to Alfred Marshall Economics is a study of man in the ordinary business of life. It enquires how he gets his income and how he uses it. Thus, it is on the one side, the study of wealth and on the other and more important side, a part of the study of man. According to Lionel Robbins Economics is a science which studies human behaviour as a relationship between ends and scarce means which have alternative uses
According to George Bernard economics is the art of making the most out of life, divided into two branches that is micro and macroeconomics
MICROECONOMICS:
Micro means ‘Small’ so it indicates study of small economic units. The word micro is derived from a Greek word Mikroos.
Microeconomics is the study of the economic system from the perspective of households and business firms; it focuses on the nature of individual consumption and production units within a particular market or economic system. Also
Microeconomics is the study of decisions that people and organizations make with regard to the allocation of resources and prices of goods and services. Microeconomics also takes into account various policies like tax policies and government regulation at the individual level and at the firm level. Thus it encompasses supply and demand, and other forces that determine price. It helps to analyze the reasons for variations in price due to increase or decrease in supply, and the factors influencing the demand and supply. For example, the microeconomic concept analyzes why an increase in the number of pizza joints in one particular area would cause lower pizza prices in that area.
PROBLEMS:
The major economic problem is
Economics is the social science that analyzes the production, distribution, and consumption of goods and services. Different economists has given different definations of economics.
The philosopher Adam Smith (1776) defines the subject as "an inquiry into the nature and causes of the wealth of nations.
According to Alfred Marshall Economics is a study of man in the ordinary business of life. It enquires how he gets his income and how he uses it. Thus, it is on the one side, the study of wealth and on the other and more important side, a part of the study of man. According to Lionel Robbins Economics is a science which studies human behaviour as a relationship between ends and scarce means which have alternative uses
According to George Bernard economics is the art of making the most out of life, divided into two branches that is micro and macroeconomics
MICROECONOMICS:
Micro means ‘Small’ so it indicates study of small economic units. The word micro is derived from a Greek word Mikroos.
Microeconomics is the study of the economic system from the perspective of households and business firms; it focuses on the nature of individual consumption and production units within a particular market or economic system. Also
Microeconomics is the study of decisions that people and organizations make with regard to the allocation of resources and prices of goods and services. Microeconomics also takes into account various policies like tax policies and government regulation at the individual level and at the firm level. Thus it encompasses supply and demand, and other forces that determine price. It helps to analyze the reasons for variations in price due to increase or decrease in supply, and the factors influencing the demand and supply. For example, the microeconomic concept analyzes why an increase in the number of pizza joints in one particular area would cause lower pizza prices in that area.
PROBLEMS:
The major economic problem is