What are the Importance/Uses of Microeconomics? |
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| Ans : Importance/Uses of Microeconomics
a) Understanding functioning of the economy:- Microeconomic helps in understanding the functions of the free enterprise economy. It gives an idea about how measure economic decisions are taken in market.
b) Helpful in efficient allocation of resources:- Microeconomic is helpful in the efficient allocation of resources. It suggest us that how scarce resources can be utilized in production process in an economic.
c) Provides tools for economic policies:- It helps the state and central government to frame economic policies like price policy, taxation policy. It also explain the condition of in production and consumption.
d) Helpful to study of human behavior:- Microeconomic studies human behavior with the help of law of demand, law of maximum satisfaction etc.
e) Basis of welfare economic:- The entire structure of microeconomic has been built on the basis of price theory. It suggests the condition of efficiency and explains how it can be achieved. It helps in improving standard of theory.
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