Explain Micro economics is known as income theory?

Explanation  [Micro economics is known as Price theory]: The subject matter of micro economics includes the theory of product and factor pricing.  The theory of product pricing explains how the prices of different commodities such as cloth, wheat, rice, sugar, etc. are determined. The theory of […]

Why Micro economics studies behaviour of individual economic unit?

Reasons: The word ‘Micro Economics’ has been derived from the Greek word ‘mikros’ which means ‘small’ Micro economics splits or divides the whole economy into small individual units and then studies each unit separately in detail thereby using slicing method. […]

Give reasons or explain: Price theory is useful to businessmen.

Reason:  Micro economics (Price theory) analyses the patterns of supply and demand so as to determine the price and output in the individual markets. The theories of product pricing and factor pricing help an entrepreneur in various ways. The price […]

Write a short note on: Historical review of Micro Economics.

Historical review of Micro Economics. Micro economics is a traditional approach and its origin can be traced back to the era of classical economist. It was founded by Adam Smith, also known as “The father of Economics”. In his book […]

What is the importance of Micro Economics?

The importance of Micro Economics is as given below: I. Price Determination: Micro economics helps in explaining how the prices of different commodities are determined.  It also explains how the prices of various factors of production such as rent for […]

Explain the features of Micro Economics. 

Micro economics deals with the study of economic behaviour of small individual economic units such as individual consumer, firm, producer etc. The various features of Micro economics are as follows: i.    Price Theory: All the factors of production (such […]

Explain the subject matter of Micro Economics.

 Subject Matter of Micro Economics:  The subject matter of Micro economics basically deals with the following theories:   Theory of Product Pricing:   This theory explains how the relative prices of cotton, cloth, rice, car and thousands of other commodities are […]