Some of the key topics studied under microeconomics include the following: Microeconomics tries to illustrate what happens when certain conditions change in the markets.Įxamples of macroeconomic topics may include the study of production maximization and how it can make organizations more efficient. Instead, it shows the effects of various forces on the markets. In simpler words, microeconomics is the type of economics that is related to human choices, decisions made by humans, and how they allocate resources.Īlthough microeconomics studies the markets and the forces of demand and supply, it does not try to explain what forces should drive the markets. It takes a bottom-up view in analyzing economic subjects. Microeconomics looks at the demand and supply of products and keeps a record of markets in terms of these two factors. Some topics that are discussed in microeconomics include taxes, government regulations, and legislation. Microeconomics also looks at the prices at which goods and services are traded by individuals and businesses. Microeconomics deals with the allocation of resources made by individuals and businesses and how they trade goods and services. Although there are some differences, the two types of economics are interdependent and there are many common grounds between the two types of economics. Microeconomics deals with topics concerning individuals and businesses while macroeconomics deals with subjects related to countries and governments. Depending on the nature and gravity of the topics covered, economics is divided into two parts, namely:
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