MICRO ECONOMICS

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DEFINITION OF

MICRO ECONOMICS

What is micro economics ?

Orginated from a Greek word oikonomikesOIKOS -HOUSEHOLDNOMOS -MANAGEMENT. How an individual manages his households.. How male and female fullfill the wants and needs of his family in order to satisfy the need of his family

It is the study of wealth ,human behaviour or of scarce recourses , Economics is an science or art.Economics can be also apositive as well as a normative science.

Wealth Definitions

Adam smith(1723-1790)

Adam smith defined economics as.....The science of wealthAdam smith defined it as “Nature and causes of wealth of nations”.Where by it enrich both the people and the sovereign.Among his followers were. J.B. Say J.S.Mill

characersticsGive more emphasis on wealth Enquiry into the creation ofwealthA study on the nature of the wealth.

Welfare Definitions

British economist

Alfred Marshall (1842-1924)

According to Alfred marshall Economics is the study of man in the ordinary business of his life”;It examines that part of individual and social action which is most closely connected with the attainment of and with the use of the material which will be useful for the wellbeing

Thus it is on the one side ; The study of wealth and on the other side you are more important and a part of the study of man.

CHARACTRSTICS

1. A study of material requirements of well being.2. It concentrated on the ordinary business life.3. it stress the importance of man.

scarcity Definitions

Lineal Robinson(1876-1963)

According to robinson economics is a science which studies human behaviour as a relationship between ENDS & SCARCEMeans : which have alternative uses

CHARACTERSTICS.human wants are unlimited

.Limited means to satisfy human wants and needs

.Alternative uses of the scarce resources

.Efficient use of scarce resources

.Need for choice and optimisation

Growth centric

Definitions

Paul Samuelsson(1915-2009)

The study of how people and society ends up. Choosing with/without the use of money to employee the scarce productive resources that have alternative uses to produce various commodities over time and distributing them/consumption now/in the future among various persons are grouped in the socitey . It analysis cost and benefits of improving pattern of resource allocation .

CHARACTERSTICS.Growth oriented .Dynamic allocation of recourses.Dynamic allocation of consumption .Possibility of improvement in recourse allocation