Microeconomics - Explained
What is Microeconomics?
Written by J. Mance Gordon
Updated at April 23rd, 2024
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What is Microeconomics?
Microeconomics is a field of economics that focuses on how decisions made by individuals, households or a companies give rise to changes in production, allocation, and distribution of resources.
What are the Economic Behaviors Exhibited by Consumers and Producers?
Economic behaviors exhibited by consumers or producers (whether individuals, households, or firms) have several implications, including:
- how a product is perceived,
- the scarcity of a product,
- how economic resources are distributed,
- price.
How is Microeconomics Different from Macroeconomics?
Microeconomics deals with the decisions and behaviors of individuals and households and the affect on product price and distribution, while macroeconomics focuses on the economic behavior of the whole population, it carries out an aggregate of the impacts of behaviors and decisions made in an economy.
How is Microeconomics Used?
The uses of microeconomics are:
- Provide insight into how certain conditions in the market are affected by economic behaviors and decisions of individuals, households, firms, and industries.
- Examine the impacts of human action on the prices of goods, demand, production, allocation, and distribution of the goods.
- Forecast certain trends that might occur in the market due to certain decisions or actions by individuals, firms or households involved.
- Draw market insights.
What are the Basic Concepts of Microeconomics>
There are several key concepts in microeconomics, the most prominent ones include supply, demand, resources allocation, equilibrium, production, labor, and price.
Related Topics
- Economics
- Scarcity in Economics
- Division of Labor
- Microeconomics
- Macroeconomics
- Theory and Models
- Traditional Economy
- Command Economy
- Centrally Planned Economy
- Market Economy
- Free Market Economy
- Collaborative Economy
- Private Enterprise
- Mixed Economy
- Underground Economy
- Black Economy
- Government Market Regulation
- Capitalism
- Conscious Capitalism
- Communism
- Centrally Planned Economy
- Socialism
- Marxism
- Egalitarianism
- Plutocracy
- Neoliberalism
- Underground Economy
- Black Economy
- Globalization
- Imports and Exports
- Gross Domestic Product
- Fiscal Policy
- Social Economics
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- Mathematical Economics
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- Labor Economics
- Organizational Economics
- Development Economics
- Behavioral Economics
- Environmental Economics
- Evolutionary Economics
- True-Cost Economics
- Managerical Economics
- Experimental Economics
- Welfare Economics
- American Economic Association