Economics is one of the many subjects in which we have our expertise. Microeconomics is often termed as the first branch of economics and macroeconomics is termed as the second branch. Both of these subjects have a lot of importance and if a student wants to excel in economics then he or she must understand both macro as well as microeconomics well. Even though economics is an extremely important and valuable subject on its own, it still cannot survive without its primary component that is microeconomics. For a normal individual, the hike in price would not matter much but the people who are working in the area of economics would be affected adversely if the price of even one commodity increases. Therefore, it is important for such people to study microeconomics in a proper manner so that they can be aware of the procedure where goods and services are distributed among people through a proper market mechanism.
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Microeconomics can be referred to as that subject that deals with the behavior of the households as well as the different organizations at the time of making suitable decisions for resource allocations. The main area where microeconomics is applied is where the exchange of both goods and services take place. In this particular area microeconomics help us in identifying the different behaviors of people on the demand and supply of goods and services. Microeconomics helps an individual in the analysis of the market which would eventually help them to understand of how the pricing of certain goods and services have been done. Also, how these prices affect the supply and demand of these products.
There are a number of important topics which come under the area of microeconomics which should be studied well in order to excel in the subject and are as follows:
Microeconomics is a subject which can be applied in a number of areas and most importantly in the industrial organization. The assignments which are concerned with labor economics deal with issues like employment and wages of the labor market. The assignments which are concerned with political economics deal with political institutions and how they deal with the different policy outcomes. The assignments which are related to health economics deals with the different health care systems which are present in the economy. The entire health care workforce as well as the health insurance programs is included in this particular branch. The subject of urban economics deals with the different challenges which are faced by the big cities.
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