Question

Briefly explain the merits and demerits of micro economic?for 5marks


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Answer 1

Answer:

merits of Micro

1)Micro economics is useful in making predictions based on conditions.eg demand forecasting depends on the micro economic principles of demand.

2) Micro economics uses simple models to understand actual economic phenomenon.

3) It explains and analysis how a country can gain from international trade.

Demerits of micro

1) Micro economics is based on unrealistic assumptions, especially in case of full employment assumption which does not exist practically.

2) Micro economics is based on the information dealing with individual behaviour, individual customers. Hence, it is difficult to get correct information

3)It assumes that all other things being equal (same) but actually it is not so.

hope it helps u ✍✍✍✍

Answer 2

1)Micro economics is useful in making predictions based on conditions.eg demand forecasting depends on the micro economic principles of demand.

2) Micro economics uses simple models to understand actual economic phenomenon.

3) It explains and analysis how a country can gain from international trade.