Question

How is microeconomics applicable to the greater socioeconomic world we live in today. (at least one page)

Answer 1

Microeconomics offers the ways to efficiently distribute resources to various goods and services so that they can get full usefulness. There are various consumer behavior theories, the theories explain how consumers can invest the limited money they need to maximize their satisfaction. Companies or entrepreneurs use the microeconomic theories of consumer behavior, production, expense, competition, profits, etc. to make proper economic decisions. The microeconomics helps them to know the purchasing power of the ability to pay, the proper combination of inputs to maximize costs or maximize profit, the effects of changes in tax rates, subsidies and so on

Microeconomics offers the ways to efficiently distribute resources to various goods and services so that they can get full usefulness. There are various consumer behavior theories, the theories explain how consumers can invest the limited money they need to maximize their satisfaction. Companies or entrepreneurs use the microeconomic theories of consumer behavior, production, expense, competition, profits, etc. to make proper economic decisions. The microeconomics helps them to know the purchasing power of the ability to pay, the proper combination of inputs to maximize costs or maximize profit, the effects of changes in tax rates, subsidies and so on

The macroeconomics lets us research the relationship between large numbers of variables in macroeconomics. The variables are aggregate consumption, aggregate income, aggregate savings, aggregate investment, aggregate demand, aggregate supply, price level Macroeconomics helps us to know how the economy works, how it is regulated, because macroeconomics gives us knowledge of the market of products, labor market, capital market, land market, international trade, etc.

Microeconomics is of great help in the study of the economic welfare conditions. We now recognize the standard of living and the state of people's welfare with the aid of this branch of economics. Not only can we research their welfare status but we can also examine the variables that also decide their welfare. This branch of economics helps us understand people's level of satisfaction in the economy.