Micro Economics

1) what to produce

2)how to produce

3)for Whome to produce

Increasing returns to scale.

The Federal Reserve System implements its monetary policy by controlling the federal funds rate, which is the interest rate for interbank lending operations.

Indifference curve is a set of all the consumption bundles which are indifferent in the level of utility each bundle provide. Any bundle which provide higher utility will form another IC. Thus Indifference curve is a closed set.

A demand and supply curve is used in economic to show that in a competitive market, the price of a product will vary depending on the need of the consumers.

Price and demand of a good have inverse relationship. An increase in the prices of a good will lead to fall in the demand of a good and viceversa.

Private industries mainly work for profit purpose. If they provide public goods then it has to be priced at lower rates which will diminish their profit margins. Thus, it is difficult for private players to provide public goods.

If supply of a commodity decreases, the supply will fall. Prices and supply of good have positive relationship.

the supply curve will fall if heavy indirect taxes are imposed. A price will worsen the burden of suppliers which force them to cut the supply of goods.

Economics is both science and art. As a science it works on economic models. As art, it deals with individuals so their is change in human behavior. The interpretation of models may vary.

in Macro economics supply may refer to supply of factors of production, labor supply or supply of capital.

This is called equilibrium.

Microeconomics refers to a small, localized economy.

Indifference curves are not supposed to have any thickness to them at all. It would not be rational if an indifference curve had thickness to it. It is supposed to look like a really thin pancake with only one side.

If the price floor is above market equilibrium then companies are forced to sell at that price. This means the market's quantity supplied and quantity demanded will not equal each other, resulting in a surplus.

If the price floor is lower than market equilibrium then the government imposed regulation is non-binding, resulting in no change to the market.

price ceiling makes a bar on the equilibrium prices. it compels the suppliers to charge the ceiling price from the consumers. it is generally lower than the equilibrium price. at this price quantity supplied is less than the quantity demanded and the market is not in equilibrium.

If the price floor is above market equilibrium then companies are forced to sell at that price. This means the market's quantity supplied and quantity demanded will not equal each other, resulting in a surplus.

macro

Macro economic is differ from micro economic because macro economic study as a whole economics but micro economic study only of an individual.

Microeconomics is literally "small" economics, which typically concentrates on the interrelatedness of single markets and firms. Macroeconomics is "big" economics and concentrates on the economy as a whole, international trade, etc.

They promote economic growth by adding money into the economy, which is then spent on goods and services. That leads to greater availability of funds to lend, which leads to lower interest rates, which leads to greater borrowing for business investment, which leads to business expansion, which leads to more employment, which leads to economic growth.

microeconomics is called microscopic analysis because it analyze the behavior of micro or small units of the economy like individual consumer, producer, factor suppliers etc.

The individual units that make up the whole of the economy.

Mean welfare in micro ecomomics is grapes.

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according to harrod domar model the level of savings remain constant to the proportion of income.
Harrod-Domar model assumes a simple production function y=f(k), where k is capital