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Micro Economics
Micro Economics is the branch of Economics which analyses the market behavior of individual consumers and firms. It focuses on the patterns of supply and demand and price and output determination in the individual markets.
390 Questions
Should i take college microeconomics?
Yes, I am on my last week of micro with Austin peay state university, its pretty much a joke, easy math, easy concepts...
I studied for only one of the tests and ended up scoring better on the ones I didnt study for, that's just me though...
Just don't get intimidated, if you don't understand something right away, just re analyze, put it on paper, and things will click.
Define economics distinguish between micro economics and macro economics?
Economics is the science of decision making. It is the social science concerned with the allocation of limited (scarce) resources in the presence of unlimited potential uses for those resources. A resource is something that is consumed in the production of a good or service. Examples of resources include land, labor, capital, time, money, fuel, minerals, food, water, and endless others. Because resources are limited, the use of a resource dictates a trade-off with a different potential use for the same resource. This trade-off is a central concept of economics called opportunity cost.
Economics is used to determine the costs and benefits (consequences) of decisions to allocate resources. It is also used to study and predict peoples' actions based on the incentives that exist due to the expected consequences of actions. In practice, it usually deals with decisions or resources for which the value is quantified in terms of money. In some cases, the values are not easily quantified in monetary terms. Examples of difficult to quantify resources include public goods such as national defense and environmental quality. Other examples include personal resources such as leisure time and personality features.
An important distinction to make in discussing economics is the difference between positive and normative. Positive statements in economics reflect how things are. Normative statements in economics reflect opinions about how things should be. For instance, "Reducing output causes prices to rise," is a positive statement. In contrast, "We should reduce output to raise prices," is a normative statement.
Microeconomics deals with price and efficiency. Issues in microeconomics include the production, consumption, and trade of goods and services. Macroeconomics deals with the growth and stability of an aggregate economy. Issues in macroeconomics include government regulation, monetary policy, and fiscal policy.
Cheers to your English by the way. And utility is also derived from leisure. Utilitarianism is the application of the concept. Utility is derivable (sometimes very roughly however) through observing prices. If I am willing to spend $0.45 driving to the store, $2.05 worth of time, and then $5.00 on a loaf of bread, then you know that I value the expected utility from that loaf as greater than $7.50. Utility is simply the theoretical unit of satisfaction. Every decision made is determined by cost-benefit analysis measured in utils, however as it is an intangible unit we use other units such as dollars or yuans or McDonald's Chicken Sandwiches (if you're feeling bodatious.
What are the scope of microeconomics?
The scope of Micro Economics is concerned with the following topics :-
1. Commodity Pricing
Prices of individual commodities are determined by market forces of demand and supply. So micro economics makes demand analysis (individual consumer behaviour) and supply analysis (individual producer behaviour).
2. Factor Pricing
Land, labour, capital and entrepreneur, all factors contribute in production process. So they get rewards in the form of rent, wages, interest and profit respectively. Micro economics deals with determination of such rewards i.e. factor prices. So micro economics is also called as 'Price Theory' or 'Value Theory'.
3. Welfare Theory
Micro economics deals with optimum allocation of available resources and maximisation of social welfare. It provides answers for 'What to produce?', 'When to produce?', 'How to produce?' and 'For whom it is to be produced?'. In short, Micro economics guides for utilizing scarce resources of economy to maximize public welfare.
What are some example of microeconomics?
Example of microeconomics are :
- households
- bussiness firms
- industrial activities etc..
Who is the father of micro economics?
Adam Smith..
Since during his time Economics be almost wholly concerned with Microeconomics, he is, therefore, more precisely the father of Microeconomics.
Under the scope of microeconomics we study about different fields of areas of it . The major scope of microeconomics covers the following topics:
1. theory of demand (consumers behaviours)
2. theory of production ( producers behaviours)
3. theory of product pricing (price & output determination)
4. theory of factor pricing ( distribution)
5. theory of economic welfare
What is an example of micro economics?
Two examples of Microeconomics are the distribution of income within the country and the nature of individual markets (i.e. Agriculture). Hope this helps (=
Dicuss the interdependence of micro economics and macro economics with examples?
Public sector is an organization which is owned by public authorities including central state or local authorities to an extend of 50% or more. The public sector is that portion of society controlled by national, state or provincial, and local governments. The public sector overlaps with the private sector in producing or providing certain goods and services. The extent of this overlap varies from country to country, state to state, province to province, and city to city. This overlap is most often seen in waste management, water management, health care, security services, and shelters for homeless and abused people.
ROLE OF PUBLIC SECTOR IN INDIA:
The public sector has been playing a vital role in the economic development of the country. In fact the public sector has come to occupy such an important place in our economy that on its effective performance depends largely the achievement of the country's economic n social goals. Public sector is considered a powerful engine of economic development and an important instrument of self-reliance. The main contributions of public enterprises to the country's economy may be described as follows:
* Employment: Public sector has created millions of jobs to tackle the unemployment problem in the country. Public sector accounts for about two-thirds of the total employment in the organised industrial sector in India. By taking over many sick units, the public sector has protected the employment of millions. Public sector has also contributed a lot towards the improvement of working and living conditions of workers by serving as a model employer.
* Balanced Regional Development: Public sector undertakings have located their plants in backward and untrodden parts of the county. There area lacked basic industrial and civic facilities like electricity, water supply, township an manpower. Public enterprises have developed these facilities thereby brining about complete transformation in the socioeconomic...
What is scarcity in an economic sense?
scarcity is the problem in all societies. Scarcity is limited resources to satisfy human wants.
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What is applied microeconomics?
Applied microeconomics is a sub-field of economics which uses data and econometric methods to test economic theory. Sometimes the theory being tested is well-defined but often it is a general question where the researcher does not have a specific theoretical prediction.
Within applied microeconomics there are several well-recognized distinctions. Applied micro is an umbrella term for empirical work in labor, urban, industrial organization, public, health, and political economy. While these are its traditional realms, economists have also used the same econometric methods in other areas which has lead some to claim economics is "imperialistic."
Furthermore, a distinction is often made between "reduced-form" and structural work. Reduced form is not directly guided by a theory whereas structural derives an estimating equation from a theoretical model.
Definition of microeconomics in words of Adam smith and explain it?
This is the science of wealth according to Adam Smith. Microeconomics concentrates on small businesses instead of the whole country together.
Distinguish between micro economics and macro economics?
Microeconomics deals with the relationship between financial and goods matters on a personal level, which can extend to the accounting systems of separate firms or banks. There is no relationship with anything more than in one sector of the macroecomonic system (see below), and within this sector it is only the relationship between its various parts such as labour and wages, or capital investment and dividends that can be covered by this subject. It becomes interesting when for example the legal aspects of how to divide inheritances between distant members of families is examined in detail.
Macroeconomics deals with the "big-picture" of the whole system. This involves the functional way that various parts of the system are connected, by their being represented as various sectors within the community. These sectors include at least the following: landlords, government, house-holders, producers, capitalists and banks (and other finance institutions). To achieve this capacity to cover the complete activities within a country, macroeconomics must incorporate a model of the system and within the model it must contain the various sectors (or functional entities) by which the nation works as a compound community, various activities within the system being autonomously controlled. The problems that characterise this are equilibrium and stability (also instability as at present) of the existing system and also of its growth and how this is both limited and encouraged by different forces working between the entities.
Application of microeconomics?
micro economics is applied in determining the output and prices, demand and supply of goods, working of different markets like perfect competition, monopoly, oligopolistic etc.
What are the key words of microeconomics what is the universal economic problem?
Microeconomics is the branch of economics that study decision making by a single individual, household, firm, industry or level of government. Microeconomics applies a microscope to study specific part of an economics. The focus is on small economics units, such as economics decision of particular group of consumer and Businesses. Microeconomics is the branch of economics that study decision making by a single individual, household, firm, industry or level of government. Microeconomics applies a microscope to study specific part of an economics. The focus is on small economics units, such as economics decision of particular group of consumer and Businesses.
What are the uses of microeconomics?
The uses of Micro Economics are listed below:
- Individual Behaviour Analysis: Micro economics studies behaviour of individual consumer or producer in a particular situation.
- Resource Allocation: Resources are already scare i.e less in quantity. Micro economics helps in proper allocation and utilization of resources to produce various types of goods and services.
- Price Mechanization: Micro economics decides prices of various goods and services on the basis of 'Demand-Supply Analysis'.
- Economic Policy: Micro economics helps in formulating various economic policies and economic plans to promote all round economic development.
- Free Enterprise Economy: Micro economics explain operating of a free enterprise economy where individual has freedom to take his own economic decisions.
- Public Finance: It helps the government in fixing the tax rate and the type of tax as well as the amount of tax to be charged to the buyer and the seller.
- Foreign Trade: It helps in explaining and fixing international trade and tariff rules, causes of disequilibrium in BOP, effects of factors deciding exchange rate, etc.
- Social Welfare: It not only analyses economic conditions but also studies the social needs under different market conditions like monopoly, oligopoly, etc.
What are the features of Micro Economics?
The important features of Micro Economics are mentioned below.
- Nature of Analysis: In micro economics, the behaviour of individual consumers and producers in detail is analysed. It is study of subject matter from particular to general.
- Method: Micro economics divides the economy into various small units and every unit is analysed in detail. It is a slicing method.
- Scope: Micro economic analysis involves product pricing, factor pricing and theory of welfare.
- Application: Both theoretically and practically, micro economics is useful in formulating various policies, resource allocation, public finance, international trade, etc.
- Nature of Assumptions: Assumption of Ceteris Paribus is always made in every micro economic theory. It means theory is applicable only when 'other things being same'
