Question

How is Microeconomics applicable to the greater socioeconomic world we live in today. (at least 3 pages)

Answer 1

Microeconomics offers the ways to better distribute resources to different goods and services so that they can get full usefulness. There are various consumer behavior theories, the theories explain how consumers can use the limited money to increase their satisfaction
Relevant to companies or businessmen-Companies or businessmen use the microeconomic theories of consumer behavior, development, expense, demand, sales, and so on to make effective economic decisions. The microeconomics allows them to know the buying power of the willingness to pay, the correct combination of inputs to optimize costs or maximize benefit, the impact of adjustments in tax rates, subsidies and so on

On the basis of the impact of change in these factors on demand for goods and services, government will decide taxes, subsidies, wage level, allowances, etc Some goods will be levied while others will be subsidised. Salaries and allowances are calculated depending on the relationship between these and demand variables. With the aid of microeconomic theories, interest rate, exchange rate and money supply too are modified.

Macroeconomics helps us to know how the economy works, how it is regulated, because macroeconomics provides us with knowledge of the product market, the labor market, the capital market, the land market, the international trade market, etc.
Macro-economics provides us with different foreign trade theories. It provides us with various remedies of the country's import dependence and greater outflow of capital. Custom duty, exchange rate, gold transaction etc. may be adjusted by the government or country to promote export and reduce import.