Microeconomics is a branch of economics that contemplate the attributes of decision makers within the economy, such as households, individuals and enterprises. The term ‘firm’ is generally used to refer to all sorts of trade. Microeconomics distincts with the study of Macroeconomics, which considers the economy as an entity.
- A Simple Economy : Every individual in the community is occupied in the manufacturing of some goods or services and they require an amalgam of many goods and services not all of which are produced by them. Regardless to say that there has to be some similarity between what people in community accordingly want to have and what they manufacture.
- Central Problems of an Economy : Production, exchange and utilization of goods and services are among the fundamental economic pursuits of life. In the course of these fundamental economic pursuits , every community has to face dearth of resources and it is the insufficiency of resources that gives upsurge to the issue of choice. The inadequate resources of an economy have competing utilization.
- Organization of Economic Activities –
- The Centrally Planned Economy
- The Market Economy
- Positive and Normative Economics : It was stated prior that inthe principle there are more than one ways of resolving the central issues of an economy. These distinct mechanisms in general are likely to give an upsurge to different solutions to those issues, thereby ensuing in different distributions of the resources and also different apportionments of the final mix of goods and services manufactured in the economy. Therefore, it is significant to comprehend which of these substitute implementation is more prudent for the economy as a whole. In economics, we generally try to scrutinize the different mechanisms and reckon out the results which are likely to outcome each of these mechanisms.
The above mentioned is a brief introduction to ‘Microeconomics’. To know more, stay tuned to BYJU’S.
Students can also refer to :