1.

1). What is microeconomics? Write any three difference between microeconomics and macroeconomic ​

Answer»

Microeconomics is a branch of economics that STUDIES the behaviour of individual units such as households, individuals and ENTERPRISES WITHIN the economy. Microeconomics USES demand and supply as tools of analysis to study the decisions of individual entities in the economy.

Microeconomics focuses on supply and demand, and other forces that determine price levels, making it a bottom-up approach. Macroeconomics takes a top-down approach and looks at the economy as a whole, trying to determine its COURSE and nature. Microeconomics studies individuals and business decisions, while macroeconomics analyzes the decisions made by countries and governments. Investors can use microeconomics in their investment decisions, while macroeconomics is an analytical tool mainly used to craft economic and fiscal policy.

Hope it helps :)


Discussion

No Comment Found

Related InterviewSolutions