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Principles of Microeconomics in the Present Time - Research Paper Example

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Microeconomics is a branch of economics which deals with the micro or small aspects of economics like the allocation of resources by firms, consumers or households. The writer of this paper focuses on the principles of microeconomics in the present time…
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Principles of Microeconomics in the Present Time
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Download file to see previous pages Numerous terms are associated with both macro and microeconomics. Some of the major terms involved in microeconomics are marginal cost and marginal utility, opportunity cost, types of goods, the law of demand and law of supply, monopoly, elasticity, utility etc. This paper briefly explains these terms in order to get a brief idea about the principles of microeconomics.
“Microeconomics is the study of decisions that people and businesses make regarding the allocation of resources and prices of goods and services. This means also taking into account taxes and regulations created by governments” (What's the difference between macroeconomics and microeconomics, n. d). It also focuses on supply and demand and other market forces that determine the price in the market. The allocation of resources can affect the supply and demand of the goods in the market which determines the price of the commodities. Microeconomics studies the relationship between supply and demand with the prices. In other words, microeconomics deals with the behaviors of the buyers and sellers and the factors which affect the buyers and the sellers. Microeconomics normally concentrates on the micro aspects of the economy. For example, it is the duty of the microeconomics to study the problems associated with or the economic condition of a specific company or organization.
“Macroeconomics, on the other hand, is the field of economics that studies the behavior of the economy as a whole and not just on specific companies, but entire industries and economies. This looks at economy-wide phenomena, such as Gross National Product (GDP) and how it is affected by changes in unemployment, national income, the rate of growth, and price levels” (What's the difference between macroeconomics and microeconomics, n. d). ...Download file to see next pagesRead More
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