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(from greek prefix mikro- meaning “small”)
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*”micro-economics” is a ‘branch’ of ‘economics’ that studies the ‘behavior’ of ‘individuals/firms’ in making ‘decisions’ regarding the ‘allocation’ of ‘scarce resources’ and the ‘interactions’ among these ‘individuals/firms’)
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(one goal of ‘microeconomics’ is to analyze the ‘market mechanisms’ that establish ‘relative prices’ among ‘goods’ and ‘services’ and allocate limited resources among alternative uses)
(‘microeconomics’ shows conditions under which ‘free markets’ lead to ‘desirable allocations’)
(it also analyzes ‘market failure’, where markets fail to produce efficient results)
(‘ microeconomics’ stands in contrast to ‘macroeconomics’, which involves “the sum total of economic activity, dealing with the issues of ‘growth’, ‘inflation’, and ‘unemployment’ and with national policies relating to these issues)
(‘microeconomics’ also deals with the effects of economic policies (such as ‘changing taxation levels’) on the aforementioned aspects of the economy)
(particularly in the wake of the ‘lucas critique’, much of modern ‘macro-economic theory’ has been built upon ‘micro-foundations’—i.e. “based upon basic assumptions about micro-level behavior”)
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*👨🔬🕵️♀️🙇♀️*SKETCHES*🙇♂️👩🔬🕵️♂️*
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💕💝💖💓🖤💙🖤💙🖤💙🖤❤️💚💛🧡❣️💞💔💘❣️🧡💛💚❤️🖤💜🖤💙🖤💙🖤💗💖💝💘
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*🌈✨ *TABLE OF CONTENTS* ✨🌷*
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🔥🔥🔥🔥🔥🔥*we won the war* 🔥🔥🔥🔥🔥🔥