Micro Economics – Importance of Studying Micro economics

Micro Economics – Importance of Studying Micro economics

Importance of Studying Micro economics - Micro Economics

Micro Economics – Importance of Studying Micro economics

It is very important to read micro economics in modern life. Because today’s main problem is found in economics. So, society alliances people faces problem economic problem, for that it has importance a lot. Below discussing the importance of study of micro economics in modern society.

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Types of Micro Economics

Micro economics is divided into three types. They are as follows:

  1. Micro Statistics
  2. Comparative Micro Statistcs
  3. Micro Dynamics

They are explained in detailed description as follows:

  • Micro Statistics:
    It is that method of analysis which deals with relationships between two or more micro variables at a given time. It studies the equilibrium price of a commodity at a time, assuming that there is no change in demand and supply conditions. In this, we don’t study the process by which demand and supply reaches equilibrium. It studies only the relationship between micro variables.
  • Comparative Micro Statistcs:
    It makes a comparative study of the relationship between the micro variables and equilibrium positions, without explaining how the new equilibrium is attained or what happens during the transition from one equilibrium to another.
  • Micro Dynamics:
    This particular type of micro economics, studies the process by which the economy reaches from one equilibrium to another. it explains continuously about the disequilibrium position before the final equilibrium is attained.

Micro Economics – Importance of Studying Micro economics

1. In daily life of human being: Various economic problems have an influence in daily life of human being. It means in daily life men face limited wealth and unlimited scarcity. From the knowledge of economics as well as micro economics men find the solution of these problems.

2. Proper use of wealth: For moving the scarcity of human being how to improve the wealth and how to improve the use of wealth know from the micro economics.

3. Expand the scope of intellectuality: Reading micro economics the thinking and intellectuality level of human being can be expanded.

4. To the businessmen and industrialists: By getting the forecasting about future, businessmen and industrialists always have to produce goods. Micro economics provides those forecasting for produce goods.

5. To the social workers: To give solution about the problem of unemployment, poverty etc. social problems sufficient knowledge about micro economics needed. So, it is important for social worker to study micro economics.

6. To the leaders of laborers: To consist trade union and to be aware about the right of laborers, leaders of laborers should have the knowledge about micro economics. Because there is relation between labor work right and micro economics.

7. To the politicians: To do politics politician must have the knowledge about the micro economics. Without the knowledge of micro economics politicians can not get prosperity in politics. Because they should have the knowledge about general market, money market, principles of revenue etc.

8. Government administration: In government administration the employees should have the knowledge about micro economics. The knowledge about demand aid supply of goods and raw materials, money market, real market etc. is needed for being an employee of government administration.

9. In case of saving tendency: Micro economics does not teach for being frugal, it teaches to be a good saver of money as well as wealth.

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10. For implementing plan: For nation organizational and individual life, plan is very important. How much a product will produce, how it will be produced, how it will be distributed etc. keeping in mind, plan is implemented. This knowledge can be gained only by micro economics.