1. What does Microeconomics deal with?

Microeconomics deals with the economic behavior of individual economic

agents-mainly households and rms and of particular markets and
industries.
2. What does Microeconomics focus on?
The focus is on the prices and outputs of particular goods and services and
how markets interact to determine the allocation of scarce resources
among millions of alternative uses.
3. What can bring about the balance between people’s tastes for different
goods and the scarce resources needed to produce them?
Through microeconomic theory, one can see how the system of market
prices allows equilibrium to the reached between people’s tastes for
different goods and the scarcity of total resources to produce them.
4. What is the difference between macroeconomics and microeconomics?
Macroeconomic is the study of overall economic trends such as
employment levels, economic growth, and in ation.
Microeconomics deals with the economic behavior of individual economic
agents-mainly households and rms and of particular markets and
industries.
5. In microeconomics what are supply and demand analyses considered
to be?
Supply and demand analyses are two of the basic tools of microeconomic
analysis and can be used to see how taxes affect prices and quantities, how
government interference with markets can cause shortages, and what
happens when a small number of producers come to dominate a market.
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 3.2
1) What does International Economics refer to?
International economics refers to a study of international forces that
in uence the domestic conditions of an economy and shape the economic
relationship between countries. In other words, it studies the economic
interdependence between countries and its effects on economy.

2) What does international economics deal with?

International economics deals with the economic activities of various
countries and their consequences.
In other words, international economics is a eld concerned with economic
interactions of countries and effect of international issues on the world
economic activity.

3) What does the pure theory of international economics deal with?

The pure theory of international economics deals with trade patterns,
impact of trade on production, rate of consumption, and income
distribution.
4) What is the scope of international economics?
The scope of international economics is wide as it includes various
concepts, such as globalization, gains from trade, pattern of trade, balance
of payments, and FDI.
5) What does Descriptive International Economics deal with?
Deals with institutional environment in which international transactions
take place between countries.
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