MICROECONOMICS

Microeconomics

Microeconomics

Introduction

Economics is, according to one definition, the science that studies human behavior as a relationship between ends and scarce means that have alternative uses (Samuelson, 1948). The economics is, therefore, the science that studies the choices rational, committed by individuals and companies, to deploy resources scarce, they may have alternative uses, to produce various types of goods and services, as well as choices designed to distribute the latter between individuals and social groups to better meet the needs of individual and collective. This paper gives a brief introduction of economics. Moreover, the paper highlights the main branches of economics (i.e. Microeconomics and Macroeconomics) along with their differences. In addition to this the paper gives a real life example of each branch of economics.

Discussion

Economics has always been concerned with government economic policies. The first task is to understand how individuals will respond to policies; the second task is to decide if a policy is good or bad. The rationalist approach to the consumer is the dominant model for predicting responses to policies, but it can also form the basis of a normative framework to assess the impact of policies on a nation's welfare (Sen, 1987). The economic system can thus be defined as a system, composed in turn by a set of subsystems represented by various economic entities, aimed, through the behavior of the latter, the well-being of society in terms of meeting individual needs, the maximizing profits, optimizing resources and avoiding waste and to promote its continued development or evolution in terms of wealth , social progress , scientific and technological and the living conditions of the population means ( economic growth ), at least according to the vision of ' market economy in the modern world of Western society.

Macro Economics:

The term macroeconomics refers to study of the ...