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7 Cards in this Set
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- 3rd side (hint)
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Introduction to micro-economics?
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The word micro-economics and macro-economics were first coined and used by Ragnar Frisch. Then they have been adopted by the economist all over the world. The term micro-economics is derived from the Greek word 'mikros' which means small. Thus in micro-economics we analyze the behaviour of the consumer as in small units and we study the individual behaviour. In other words micro-economics analysis is individualistic while macro-economics analysis is aggregative
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Historical review of micro-economics ?
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Micro-economics analysis in fact was developed and popularized by Dr. Alfred Marshall the neo-classical economist. He considered as a real architect of micro-economics.
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Dr. Alfred Marshall
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Meaning of micro-economics?
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Micro means a small part of a thing. Micro-economics this deals with a small part of the national economy. It studies the economic actions and behaviour of individual units such ads individual consumer,individual producer or firm,the price of a particular commodity or factor etc.
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small thing, behaviour of individual etc
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Definition of micro-economics ?
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According to Kenneth bouldering "Micro economics is a study to particular firms, particular households, individual prices, wages, income, individual industries, particular commodities."
According to Maurice Dobbs "Micro economics is in fact a microscopic study of the economy." |
According to Kenneth Boulding..
According to Maurice Dobb.. |
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Scope and subject matter of micro economics?
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1. Theory of product pricing :
a. Theory of demand (analysis of consumer behaviour) b. Theory of supply (production and cost) 2. Theory of factor pricing : a. Rent b. Wages c. Interest d. Profit 3. Theory of economics welfare : a. Efficiency of production b. Efficiency of consumption c. Efficiency in direction of production |
product pricing, factor pricing, welfare.
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Features of micro economics?
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1. Study of individual units..
2. Price theory.. 3. Slicing method.. 4. Partial equilibrium.. 5. Microscopic approach... 6. Analysis of resource allocation and economic efficiency.. 7. Use of marginalised principle. 8. Based on certain assumptions.. |
8 Points...
SPSPMAUB |
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Importance and usefulness of micro economics?
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1. To understand the working of free market economy..
2. Explain a price determination and allocation of resources.. 3. It helps businessman in decision making.. 4. Useful to government.. 5. Helpful in international trade and public finance.. 6. Model building.. 7. Basis of welfare economics.. |
7 Points..
TEIUHMB |
