Leaning Online

Micro Economics comes first as it is the basic of economics to study the behaviour of an individual unit or common man living in the society. After you well know about an individual unit, now you can easily learn the total productivity or output at the aggregate level. ( Macro Economics ). As far as Micro Economics Theory , due to calculation Yes, it is difficult to understand as the first step is always difficult but becomes easy and easy as you grow. So, You need full concentration on this basic step and soon after that you will have better know-how about the behavior of a particular unit in an industry or how to study the behavior of a common person living in the society. Now, after that Macro Eco nomics becomes easy for you. Macro Economics has less calculations base on Macro Economics Theory. So, you should take both Micro Economics And Macro Economics at the same time as both have strongly interdependence with each other. If you ignore one you c...

Micro Economics is a Price Theory as it is concerned with the consumer behaviors who buys goods by comparing price’s choice of different products with his own satisfaction or utility, or with the producer’s behavior who is producing particular products of different prices at the same quality. For example, a consumer compares the price and quality of substitute products i.e., companies provide the same products with different prices and quality like Company A produces ice cream and Company B also makes ice cream with different prices and quality can attract consumes’s behaviors and attract to buy due to lower prices or better quality. Macro Economics An Income Theory In Macro Economics , we study the income distribution, employment level, output level and price level as an aggregate. As we see total of income i.e., Natio nal Income, aggregate output, aggregate employment and unemployment level and General Price Level (Inflation Rate) of the total of factors of pr...

We already studied about the “ Difference Between Micro Economics And Macro Economics ”, but here we will study about the N ature and Scope of both Micro Economics And Macro Economics one by one. Micro Economics And Macro Economics Concepts / A nalysis  are two mai n and different in Nature And Scope. By Scope of Micro and Macro Economics we mean that the Economic Laws of both applicable to a selected area. For Example, the scope of Micro Economics is applicable to particular individual units, common person, particular industry sector while the scope of macro economics is applicable to a country or to whole economy of a country or at international level between two or more countries. 1. N ature And Scope of Micro Economics (i) N ature of Micro Economics Micro Economics deals with individuals decision making unit at a specific level. It is concerned with the welfare of individuals, particular industry of the operating in...

It is a part of Alfred Marshall’s Definition of Economics. The complete definition is given as: “Economics is the study of Mankind in the ordinary business of life. It examines that part of individual and social action which is mostly connected with the attainment and with the use of the material requisites of well-being”. Difference Between Wealth And Welfare In Economics The basic purpose / aim of Economics is the welfare of human beings and not concentrate only on the wealth or on rich people but it deals with common man living in the society. Wealth ca n not be given preference over welfare. Yes, we attain wealth but we can not given primary importance rather than it is utilized for the welfare of the common person and the whole society. It attains only for the fulfillment of Needs and Wants. Therefore, we study wealth only for the welfare of a common man. So, Economics is a Social Science which examines that part of human beings which is h...

Previously, we studied about Micro Economics but here, we will take into account another important branch of Economics i.e., Macro Economics. Micro Economics is the study of the economy as a whole. We study aggregate demand, aggregate supply, Natio nal Income, General Price Level, Aggregate Output, Total Consumption, Savings and Investment of the entire economy. Macro Economics Importance / Significance 1. It helps us in the economic development because it tells us how an economy grows i.e., how to the aggregate demand is determined in order to proper utilize one product’s supply. How to determine Exchange Rate and increase exports and decrease imports of a country. 2. We take into account of the whole economy and not see the individual performance of some units that are growing well but overall the economy is in depression phase. Limitations of Macro Economics 1. It sees the economy as whole and hence ignore the welfare of...

The word “Micro” means a small part or a millionth part. So, Micro Economics is the study of the economy at a small level i.e., we are interested in the study of an individual unit, particular firm, industry like Cotton, textile, rice, etc. an individual customer behavior in buying and selling goods and services (its Consumption and Spending’s patterns). We study the income of particular individuals, firms, industries and not Natio nal Income. We analyze the price level of a particular products or a factor of production and not the General Price Level prevailing in the whole economy. The demand and supply of a particular product is analyzed and not the aggregate demand and aggregate supply. Significance / Importance of Micro Economics   1. Micro Economics has great importance for the study of economy both at theoretical and practical level. For Example, at theoretical level, we study the working and functions of an economy at an individual level. Ho...

Here we discuss about Oligopoly. Oligopoly Definition We can define Oligopoly as: “It is the market model in which there are very few sellers producing either homogenous (Similar) or differentiated products and where the decision making powers of the firm depend on the expected reactions of other market firms and also the entry to the market is difficult or blocked by big firms”. Examples of Oligopoly Market Model include Automobiles Companies, Software House Companies, Air-Lines, Oil Producing and Exporting Countries. Features or Characteristics of Oligopoly 1. Few Sellers It is a market situation in which the number of firms or sellers is very few. They produce similar or differentiated products. 2. Interdependence In this market model, since there is good substitute of the products, so the policies of one producer significantly affect the decisions making powers of other sellers. One can see Higher Cross Elasticity of Deman...

We can divide the study of Economics into two parts: (i) Micro Economics (ii) Macro Economics Micro means very small or it is a millionth part so we can say that Micro Economics is the study of Economy at an individual level or we study the particular unit of the whole Economy. For Example, we study the prices of particular product, firm or an industry. We study the behavior of a Consumer, ABC, etc. Company or any industry like Cotton Industry. Macro means extremely large. Macro Economics is the study of the Economy as a whole. We study the behavior of whole companies, A To Z, Industries like Cotton, Plastic, etc. and all consumers. For Example we study the purchasing power of whole customers. We Study the General Price Level of all industries. We study the productions of all companies. In Micro Economics, We study each and every individual unit. For Example, we study individual consumption, savings, incomes, etc. But in Macro Economi...

Here we discuss about the foreign currency exchange rate. Firstly, we must understand what foreign exchange rate is. Basically, it is the rate at which one currency is converted or exchanged with another currency. For example, we can say that the rate set for Euro to Dollar is 1.09, means 1Euro = 1.09 Dollar, 1 Dollar = Rs.100, and so on. We can use Currency Converter to find out live rates. The value of one currency is increased when the purchasing power of one’s country is increased and vice versa. Every Country has its own currency different from others. There is no common medium of exchange between them. So exchange rate is used to transact between two countries. Exchange rate is determined with help of demand and supply for foreign currencies. The more demand of foreign currency the higher the exchange rate and vice versa. Demand for foreign exchange rate depends upon many factors, the most important of them are Imports of good...