Question

Briefly explain any 4 stories helps to study in Economies?
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Answer 1

Answer:

Microeconomics is defined as the study of individuals, households and firms' behavior in decision making and allocation of resources. The significance of microeconomics is discussed below:

This approach of economics helps us study and understand the practical working of the economy. The entire economy is complex and complicated for a layman to analyze. However, microeconomics facilitates easy comprehension of the economic system.

It provides the required tools that enable the formulation of various economic policies. It also provides techniques that facilitate the easy formulation of economic strategies and economic regulations.

Microeconomics is of great help when it comes to studying the conditions of economic welfare. With the help of this branch of economics, we now understand the standard of living and the condition of welfare of the people. We can not only study their condition of welfare but we can also analyse the factors that determine their welfare as well.

This branch of economics helps us understand the level of satisfaction of the people in the economy.