Question

State two characteristics of micro-economics.

Answer 1

⚫ANSWER⚫

Two characteristics of micro-economics

~~~~~~~~~~~~~~~~~~~~~~~~~~~~

1) Study of Specific units

Under it the study of particular units and economic behaviour of group is done.

2) Price theory

Micro-economics is also called price theory because under it with the equilibrium of demand and supply curve individual price of different commodities is determined.

Hope it helps......

Answer 2

Answer:

micro-economics:-

Micro means small. Thus, micro economics analyses individualistic behaviour. It studies an individual consumer, producer, price of a particular commodity, household, etc.

Characteristics / Features of Microeconomics

Classical economists always insisted on micro economics because they believed that it is better to understand concept at individual level and then go for general (or macro) level. E.g. first understanding individual consumer behaviour and then analyzing the behaviour of entire market.

1. Nature of Analysis

In micro economics, the behaviour of individual consumers and producers in detail is analysed. It is study of subject matter from particular to general.

2. Method

Micro economics divides the economy into various small units and every unit is analysed in detail. It is a slicing method.

3. Scope

Micro economic analysis involves product pricing, factor pricing and theory of welfare.

4. Application

Both theoretically and practically, micro economics is useful in formulating various policies, resource allocation, public finance, international trade, etc.