Microeconomics Overview

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Microeconomics deals with a small part or a small unit of the ______.

economy

The concept of ______ expresses the quantity of a commodity a person is willing to purchase at a particular price.

demand

Microeconomics was popularized by Prof. ______ in the early 20th century.

Alfred Marshall

Microeconomics examines individual units like households, firms, and ______.

industries Signup and view all the answers

Microeconomics looks at the economy through a microscope to understand how ______ and firms function.

individuals Signup and view all the answers

Micro economics theory is primarily concerned with the determination of prices of goods and factors of ______.

production Signup and view all the answers

The theory of distribution determines rent for land, wages for labor, interest for capital, and ______ for entrepreneur.

profit Signup and view all the answers

The ______ of economic welfare explains how an individual consumer maximizes his satisfaction.

theory Signup and view all the answers

Efficiency in production, efficiency in distribution, and overall economic ______ are crucial aspects of economic welfare.

welfare Signup and view all the answers

The price of an individual commodity is determined by the market forces of demand and ______.

supply Signup and view all the answers

Microeconomics traces its origins to classical economists like ______, who discussed how prices are determined.

Adam Smith Signup and view all the answers

Macroeconomics is derived from the Greek word ______, meaning 'large'.

makros Signup and view all the answers

Alfred Marshall popularized microeconomics in his 1890 work titled ______ of Economics.

Principles Signup and view all the answers

Macroeconomics examines the entire economic system like a bird's-eye view of the ______.

forest Signup and view all the answers

Aggregate Demand refers to the total sales proceeds entrepreneurs anticipate from sales of output at a given ______ level.

employment Signup and view all the answers

Efficiency in production aims at producing the maximum possible amount of goods and services using the given amount of ______.

resources Signup and view all the answers

Efficiency in consumption maximizes overall ______ among the population.

satisfaction Signup and view all the answers

Overall economic efficiency refers to the production of goods that are most ______ by the people.

desired Signup and view all the answers

Microeconomic analysis is crucial in shaping government ______, including tax and public expenditure.

policies Signup and view all the answers

Microeconomics helps in understanding international ______ and the determination of exchange rates.

trade Signup and view all the answers

Micro economics analyzes how resources are allocated to the production of particular goods and services within a ______.

country Signup and view all the answers

Microeconomic theory provides insights into how a free market ______ functions.

economy Signup and view all the answers

Microeconomics examines the conditions of economic ______ to explain effective resource allocation.

well-being Signup and view all the answers

Micro economics utilizes the ______ method to study economic units in-depth.

slicing Signup and view all the answers

Microeconomics does not extensively analyze broad national economic issues such as unemployment, poverty, and income ______.

inequality Signup and view all the answers

Partial equilibrium analysis begins with the assumption of 'other things being ______' to understand relationships between variables.

equal Signup and view all the answers

Microeconomics assumes no government intervention, full employment, and perfect ______.

competition Signup and view all the answers

Microeconomics examines various market ______, such as perfect competition and monopoly.

structures Signup and view all the answers

Microeconomics is a microscopic study of the ______.

economy Signup and view all the answers

Microeconomics uses ______ as an analytical tool to examine the change in total effect from an additional unit.

marginalism Signup and view all the answers

The theory often relies on the 'ceteris paribus' assumption, which means 'other things being ______'.

equal Signup and view all the answers

Microeconomics

The study of individual economic units, like households, firms, or industries, examining their behavior in detail.

Demand

The quantity of a good that a consumer is willing and able to purchase at a given price and time.

Supply

The quantity of a good that a producer or seller is willing to offer for sale at a given price and time.

Macroeconomics

Studies the economy as a whole, looking at aggregate factors like inflation, unemployment, and economic growth.