Successfully stepping into 6
year in order to achieve once again success
Q1. WHAT IS MICRO ECONOMICS? EXPLAIN ABOUT ITS FEATURES
The term Micro Economics is derived from the Greek work ―Mikros‖ which means―
. Thus Micro Economics is the Study of the Economic actions of individuals units and smallgroup of individual units.Micro economics may be defined as
that branch of economic analysis which studies the
economic behaviour of an individual unit
. It is the study of one unit, rather than all the unitscombined together.
Study of Individual Unit
: - Micro Economics is the study of the economic actions of individualsunits such as individual consumer or producer, household, particular firm, price of particularcommodity etc.
: - Micro Economics is Microscopic Study of the economy. It is like looking atthe economy through Microscope to find out behaviour of individual producers and consumers andworking of the market for the individual commodities.
: - Price is the core
of Micro Economics. It is concerned with the Theory of
Product Pricing with its two constituents. Theory of consumer‘s behaviour and theory of
production and costs.
: - Micro Economics is concerned with small or specific unit of an economy and adetailed study of it. Since Micro economics splits up the entire economy into small parts, it is also
known as ―Slicing Method‖.
Science of Economising
: - It suggests economising
(optimum use of resources)
as the way out tosolve major economic problems in an economy.
Tools for evaluating economic policies
: - Micro Economics provides tool for evaluatingeconomic policies of the state
It explains conditions of efficiency in productionand consumption.
Not a study of Aggregates
: - Micro Economics is distinct from Macro Economics. In MacroEconomics we are concerned with the economy as a whole. In micro economics we are concernedwith the study of Individual units.
Micro EconomicTheoryValue theoryDistributiontheory
Rent WagesInterest Profits