Micro Economics
This can be defined as the allocation of resources which deals with the study of human behavior, individual, household and firms which also applies to market of good and services.
Principles of micro economics
The nature and scope of economics is mostly concerned with matters as a science or like any other discipline whether normative or positive. Majorly economics thinkers from Adam smith to Prof eigou has said to define the subject as the study of the material causes of wealth.
Economics may be defined with the combination of many concepts as it is existing as a subject, as a social science concerned with the allocation and proper use of scarce resources. The cost economics has different scope of Economics. Therefore a precise understanding of the subject exist which means proper allocation of scarce resources.
His definition has been considered as the most widely accepted among economist because it is related with scarcity and choice which are fundamental problems in the daily activity of man.
It is a science with social adoption since it studies human behavior. Human wants are unlimited; there are limited resources to satisfy the unlimited ones.
There are two components of Econs
They are micro and macro economics
Micro economics
This can be defined as a branch of economics that deals with human behavior and choices as they are related to small units. The constituent of micro economics are the individual , the firm, the industries, single market.
Micro economics also deal with the issues related to resources allocation, individual or household level.
Operation of Micro Economics
This decide on the price
Cost: These constitute on the information needed for economic analysis.
Macro Economics
This can be defined as the study of aggregate in an economic system, and issues of interest also varies in macroeconomics dealing with
Public account
Inflation
Unemployment
International trade
The major difference between the components is that Micro is oriented on price theory while Macro deals with aggregate.
WHY STUDY ECONOMICS
Study of economics is necessary because it is primarily concerned with the use of scarce resources to satisfy unlimited wants.
It helps individual to build a body of economics principle with the tools of economics analysis which enables him understand the current issues confronting society.
It provides training in the technique of thinking according to Lord kaynes. He said economics is the apparatus of the mind and techniques of thinking. The study of economics helps the individual to contribute his or her quotas towards the well being of the society.
The course helps develop objectivity in individual perception as what ought to be whether positive or negative towards social management.
Economics also has relevance to estate management
Thanks for reading.