Explain in a very crisp manner citing some relevant examples. Kindly explain me the above question with suitable examples. Forum is an online discussion forum where youth or even the experienced professionals discuss their queries related to and get answers for their questions from other talented individuals. An online discussion can be started by asking questions, helping others with answers.
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What is ‘Microeconomics’
The major limitation of microeconomics is it fails to explain the functioning of an economy as a whole. It cannot explain unemployment, poverty, illiteracy and other problems prevailing in the country. With reference to the office of the Attorney General of India, Which of the following statements is/are correct? In the performance of his official duties, the Attorney General has the right of audience in all courts in the territory of India.
A business economist can make conditional predictions and business forecasts with microeconomic studies. It is used to explain gains from trade, disequilibrium in the balance of payment position and determination of international exchange rate. Microeconomics is a branch of economics that studies the behaviour of goals of microeconomics individual units such as households, individuals and enterprises within the economy. Microeconomics is distinct with the study of Macroeconomics, which studies the economy as a whole entity. Microeconomics uses demand and supply as tools of analysis to study the decisions of individual entities in the economy.
What are the similarities between macro and micro economics?
Macroeconomics is the study of the entire industries, structure, performance, behavior, and economy. Kindly elaborate your answer and explain the above with suitable answer. Will an increase in government spending crowd out the private sector? Meaning higher government borrowing only causes higher interest rates and lower private sector spending. Monetary policy is the macroeconomic policy laid down by the central bank.
Microeconomics has both theoretical and practical importance. It helps in formulating economic policies which enhance productive efficiency and results in greater social welfare. Microeconomics explains the working of a capitalist economy where individual units are free to take their own decision. It describes how, in a free enterprise economy, individual units attain equilibrium position. It also helps the government in formulating correct price policies. It helps in efficient employment of resources by the entrepreneurs.