Common topics are
supply and demand, elasticity, opportunity cost, market equilibrium, forms of competition, and profit maximization
. Microeconomics should not be confused with macroeconomics, which is the study of economy-wide things such as growth, inflation, and unemployment.
What are the 4 microeconomic concepts?
Four key economic concepts—
scarcity, supply and demand, costs and benefits, and incentives
—can help explain many decisions that humans make.
What are the 3 main concepts of microeconomics?
- marginal utility and demand.
- diminishing returns and supply.
- elasticity of demand.
- elasticity of supply.
- market structures (excluding perfect competition and monopoly)
- role of prices and profits in determining resource allocation.
What are the topics of macroeconomics?
Macroeconomics studies economy-wide phenomena such as
inflation, price levels, rate of economic growth, national income, gross domestic product (GDP), and changes in unemployment
.
What are the 4 major theories of microeconomics?
- Theory of Consumer Demand. The theory of consumer demand relates goods and services consumption preference to consumption expenditure. …
- Theory of Production Input Value. …
- Production Theory. …
- Theory of Opportunity Cost.
What is the basic of microeconomics?
Definition: Microeconomics is the
study of individuals, households and firms’ behavior in decision making and allocation of resources
. It generally applies to markets of goods and services and deals with individual and economic issues.
What are the basic principles of microeconomics?
Microeconomics uses a set of fundamental principles to make predictions about how individuals behave in certain situations involving economic or financial transactions. These principles include
the law of supply and demand, opportunity costs, and utility maximization
. Microeconomics also applies to businesses.
What are the 9 economic concepts?
Economics as a social science:
Introduction to the nine central concepts:
scarcity, choice, efficiency, equity, economic well-being, sustainability, change, interdependence, intervention
.
What are the 2 types of economics?
Two major types of economics are
microeconomics
, which focuses on the behavior of individual consumers and producers, and macroeconomics, which examine overall economies on a regional, national, or international scale.
What are the 5 core concepts in economics?
Scarcity results in choices with opportunity costs
.
Values influence economic choices
.
Markets provide incentives and ration scarce resources
.
What are the six key macroeconomic factors?
Common measures of macroeconomic factors include
gross domestic product, the rate of employment, the phases of the business cycle, the rate of inflation, the money supply, the level of government debt, and the short-term and long-term effects of trends
and changes in these measures.
What are the 5 macroeconomic objectives?
High and sustainable economic growth
.
Price stability
.
Full employment
.
Balance of payments equilibrium
.
Who is the father of economics?
Adam Smith
was an 18th-century Scottish economist, philosopher, and author, and is considered the father of modern economics. Smith is most famous for his 1776 book, “The Wealth of Nations.”
What are the 7 principles of microeconomics?
Fundamental concepts of
supply and demand, rational choice, efficiency, opportunity costs, incentives, production, profits, competition, monopoly, externalities, and public goods
will help you to understand the world around you.
What are the goals of microeconomics?
The major goals of microeconomic policy are
efficiency, equity and growth
. Economic growth is often treated as a macroeconomic issue, but it is closely related to the micro-behaviour of the economy and the functioning of markets.
What are the tools of microeconomics?
- Consumer demand theory.
- Production theory.
- Cost-of-production theory of value.
- Opportunity cost.
- Price Theory.
- Supply and demand.
- Perfect competition.
- Imperfect competition.
