ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Microeconomic reform is primarily directed towards improving living standards through increasing productive and allocative efficiency, but might also have some macroeconomic impacts. It has been suggested that it will affect both the external balance and inflation.

Detailed explanation-2: -The objective of microeconomic theory is to analyse how individual decision-makers, both consumers and producers, behave in a variety of economic environments.

Detailed explanation-3: -deregulation of the labour market, reducing tariffs and other forms of protection for domestic industry against foreign competition, deregulation of the financial markets, privatisation and corporatisation of public enterprises, and.

Detailed explanation-4: -One of the major goals of microeconomics is to analyze the market and determine the price for goods and services that best allocates limited resources among the different alternative uses. Microeconomics assumes businesses are rational and produce goods that maximize their profit.