BUSINESS ADMINISTRATION
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Monetary supply of an economy
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The aggregate demand
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The purchasing behaviour of consumers
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The inflation and unemployment
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Detailed explanation-1: -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.
Detailed explanation-2: -Micro economics deals in the study of individual variables that influence the market. So how consumers behave for a commodity, how price of a commodity changes due to market demand and supply, and how these change in price leads to increase or decrease in the cost of production in the main aspect of microeconomics.
Detailed explanation-3: -Hence, consumer behaviour is the point study of microeconomics.
Detailed explanation-4: -Thus national income, economic growth and balance of payments and trade are the concern of macro economics whereas consumer behavior is the concern of micro economics.