INSTITUTE FOR TECHNOLOGY & MANAGEMENT

PRESENTED TO : PROF. KALKOTI

PRESENTED BY: ANKITA SHAH

ROLL NO: 24

Meaning of economics :
Economics is a social science and art
Economics deals the various aspects of production, distribution, consumption of limited

resources in an economy in order to satisfy human wants efficiently. Economics explains the day to day activities of people like spending buying etc.

Two Main Pillars of Modern Economy

ECONOMICS

MICRO ECONOMICS

MACRO ECONOMICS

MEANING OF MICROECONOMY:
The word Micro is derived from Greek word

Mikros which means small Micro economics is concerned with microscopic study of economy It studies the economic behaviour of individual units of economy such as households, firms , industries , and markets Microeconomics splits up the entire economy into smaller parts for the purpose of intensive study it is also known as Slicing method

DEFINITIONS OF MICROECONOMY :
Kenneth Boulding : Micro-economics is the study of particular firms, particular households , individual prices, wages , incomes, individual industries ,particular commodities.
Maurice Dobb

Micro-economics gives a microscopic picture of the economy. The activities of numerous economic units and their inter relationships are studied and analyzed minutely through this method.

IMPORTANCE
Helps in Allocation of Resources :
Formulation of Economic policy :
For instance if there is inflation in country (which can be known through micro-economics analysis) , the government would adopt a tight monetary policy

In understand the problems of taxation.

Working of Economy :
Decision making:

LIMITATIONS OF MICROECONOMICS :
Assumption of Full Employment:
Inadequate Data It may be misleading.

THANK YOU