Microeconomics is a division of Economics which deals with the study of how a firm or individual allocate their resources and how they interact with each other.
Microeconomics comes from the Greek word “Mikro” meaning small and “Economics”, that is “Mikro” + “Economics” = “Micro Economics” which deals with the smaller behavioral studies.
In this modern-day world, microeconomics has become of the talk – of – the – town when it comes to the field of economics. This is due to the fact that microeconomics plays a very important role in decision making and behavior analysis. Moreover, microeconomics also has some theoretical and practical importance such as follows:
- It helps in the efficient employment of resources
- Also helps in understanding the free economy
- Very helpful in the development of international trade
- Helpful in understanding the implications of taxation
- It acts as a basis for welfare economics
- It also provides tools for evaluation of economic policies
- Plays a very big role in the construction and the usage of models
These are some of the important points that bring out the importance of microeconomics and how it is helpful in the growth of any economy.
Types of Microeconomics
After asserting the need and importance of microeconomics, we must know what are the types of microeconomics too. So, some of the types of microeconomics are discussed below.
Micro Statics is nothing but an analysis method which deals with the relationship between different micro variables at a given time under certain conditions of equilibrium.
Comparative Micro Statics
Comparative Micro Statics is also an analysis method which deals with the comparison of equilibrium between various micro variables at different intervals of time.
Micro Dynamics is yet again another method of analysis which refers to the process where we reach one position of the equilibrium to another at different points of time.
Where to learn Microeconomics
Microeconomics is best learned through online coaching websites like “Khan Academy, BYJUs, aplia answers microeconomics, etc.” Especially Aplia Answers Microeconomics is the best website to learn microeconomics. It is because this website has more knowledge of microeconomics than any other websites put together.
To conclude, we can easily say that Microeconomics is highly important for any economy to grow prosperously. And as the saying goes “The Growth of Any Nation lies within its economy”, with the growth of microeconomics comes the growth of the nation’s economy.