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Questions and Answers
What are the two fundamental branches of economics that study different aspects of the economy at different levels of aggregation?
What are the two fundamental branches of economics that study different aspects of the economy at different levels of aggregation?
Microeconomics and Macroeconomics
Who first used the terms 'Micro' and 'Macro' in economics and in what year?
Who first used the terms 'Micro' and 'Macro' in economics and in what year?
Norwegian economist Ranger Frisch in 1933
What is the focus of Microeconomics?
What is the focus of Microeconomics?
The study of individual agents and their economic interactions within the market
What are the three theories included in the scope of 'Micro Economics'?
What are the three theories included in the scope of 'Micro Economics'?
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How does microeconomics help determine the allocation of resources?
How does microeconomics help determine the allocation of resources?
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Microeconomics focuses on the study of the economy at a large scale.
Microeconomics focuses on the study of the economy at a large scale.
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Microeconomics examines how individuals, households, and firms make decisions regarding the allocation of resources.
Microeconomics examines how individuals, households, and firms make decisions regarding the allocation of resources.
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Microeconomics is based on the assumptions of 'full employment' and 'marginal analysis'
Microeconomics is based on the assumptions of 'full employment' and 'marginal analysis'
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The scope of 'Micro Economics' includes mainly two theories.
The scope of 'Micro Economics' includes mainly two theories.
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Microeconomics plays a significant role in analyzing how prices are determined in markets.
Microeconomics plays a significant role in analyzing how prices are determined in markets.
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Study Notes
Branches of Economics
- The two fundamental branches of economics are Microeconomics and Macroeconomics, which study different aspects of the economy at different levels of aggregation.
Origin of Micro and Macro Terms
- The terms 'Micro' and 'Macro' in economics were first used by Ragnar Frisch in 1933.
Focus of Microeconomics
- Microeconomics focuses on the study of individual economic units such as individuals, households, and firms, examining how they make decisions regarding the allocation of resources.
- Microeconomics does not focus on the study of the economy at a large scale, but rather at a smaller, more individual level.
Theories in Micro Economics
- The scope of Micro Economics includes three main theories: (not specified in the provided text, but typically including Consumer Theory, Production Theory, and Market Structure Theory).
Resource Allocation
- Microeconomics helps determine the allocation of resources by analyzing how individuals, households, and firms make decisions regarding the allocation of resources.
Assumptions of Microeconomics
- Microeconomics is not based on the assumptions of 'full employment' and 'marginal analysis' (the text incorrectly stated this; microeconomics often assumes imperfect competition and does not assume full employment).
Price Determination
- Microeconomics plays a significant role in analyzing how prices are determined in markets.
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Description
Test your knowledge of microeconomics and macroeconomics with this quiz. Explore the differences between these two branches of economics and understand their significance in economic analysis.
