Microeconomics

Microeconomics

Microeconomics

Microeconomics is a branch of economics that focuses on different sectors of the economy, especially the consumers and producers. Micro is derived from a Greek word that means little.

Microeconomic reform is a major concern of the federal government since the 1980s due to the ineffectiveness of macroeconomic policies in the short term to improve international competitiveness, reduce the current account deficit and foreign debt and to increase domestic savings. The purpose of micro-economic policy is subject first to the private sector in national and international competition has increased and secondly to improve the performance of public enterprises. Microeconomic reform has focused on two main areas:

* Reduction or elimination of restrictions on trade and competition in international markets and domestic

* Reallocation of resources to market forces.

Microeconomic reforms have succeeded in generating structural changes in the Australian economy. Structural change involves long-term adjustment in modes of production and output. The direct benefit of these reforms is to reduce inflation expectations and increasing productivity and employment opportunities. For example, the Productivity Commission has estimated that the microeconomic reforms have increased by 2.5% of GDP, productivity by 1.7% and the average household income of about $ 7,000 since 1998 to 1999. The Productivity Commission has continued to provide reports to increase microeconomic efficiency. Open the Productivity Commission's website and make a list of reports and industries in the study.

Currently, the Productivity Commission is studying the idea of ending the parallel importation of books in Australia. This means that overseas publishers and printers can publish books written by Australians overseas and Australian import prices much lower than the publication of these books in Australia. Australian authors lose royalties and profits from the Australian publisher. The idea is supported by booksellers as large supermarket chains like Woolworths and Dymocks because they can not import these books at lower costs, greater freedom to sell and reduce prices for consumers . Dymocks supermarkets and has developed a campaign called the Coalition for cheaper books. Australian author, Australian publishers and small independent booksellers will disappear under this proposal and oppose the idea of reducing the import policies of the book, they argue that the publishing and writing is a cultural industry and should protected and supported. These are the arguments and microeconomic policy of efficiency, lower prices and microeconomic reform.

? What is microeconomic economics?

Figure 1

Microeconomics is based largely on supply-side economics, where the focus is on aggregate supply, rather than the Keynesian aggregate demand as the economy. The principal determinant of economic growth is regarded as the allocation and efficient use of factors of production, especially labor and capital. Microeconomic reforms designed to improve productivity and economic efficiency.

The effect of increased efficiency can be better explained using the global supply and demand curve analysis in Figure 1. If the economy is at the point A (0P10Q1), an increase of efficiency will shift the aggregate supply curve Supply Agg 1 Agg 2 and supply a new equilibrium point B. Production has increased from 0Q1 0Q2 and the general level ...