what is microelonmics what is bits important
Answers
Answer:
Macroeconomics is the branch of economics that studies the behavior and performance of an economy as a whole. It focuses on the aggregate changes in the economy such as unemployment, growth rate, gross domestic product and inflation.
*Importance of microeconomics
Importance of microeconomicsMicroeconomics 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.
Explanation:
Importance of microeconomics: It helps to study economics from the view point of an individual unit.
Micro economics deals with the study of economics from the view point of individual unit. When economic problems are studied considering small economic units like an individual consumer, or an individual producer, we are referring to micro economics.
Components of microeconomics:
1) Theory of consumer behaviour: This deals with the law of demand and consumer equilibrium.
2) Theory of producer behaviour: This deals with the law of supply and producer equilibrium.
3) Price theory: This refers to the determination of prices of factor of production in the factor market and prices of goods in the commodity market.