Microeconomics - is an independent part of a science as an economic theory.This section covers all the problems that arise as a result of the emergence, growth and development of small business entity.For small business entities include small businesses, households and others.
Microeconomics - the science, which was formed at the turn of the 19th and 20th centuries.The development of this direction was the beginning of the emergence of a huge number of small farms and small businesses.Appears between the parties to these formations relationship did not fit the existing norms and standards.That is what was the cause of a separate section that can explain and resolve conflicts that may be characteristic of a small independent market object.
Household - a term that is meant by a single person or a group of people who have a total income and property.This "body" only together offers its factors of production as well as consumption good and makes decisions.
Another term that is also widely used microeconomics - this company.It is an enterprise that produces a variety of products and services, using factors of production.The objects that will show interest in the benefits released by the company, are households, government agencies and other enterprises.This subject, which is to solve problems of microeconomics, this government.Its decisions directly affect the economic activity of companies.
As you know, almost all the resources that are used in the normal course of business are limited.As people's knowledge of how to produce a particular product.Create the conditions of this kind pose a person to choose how to produce, how to do it more effectively, etc.Therefore, in limited circumstances it helps to give preference to microeconomics correct option.
It considers the existence of a conflict between the benefits and the possibility of their rational use.It is this feature is a proportion, which is the basis of all economic relations in the market, which (in turn) affect the processes of production of the national economy.
functions of microeconomics:
1. Cognitive - study and analysis of all the processes occurring in the system.
2. Practical - the ability to apply the analysis of data obtained in practice.
3. Prognostic - the ability to timely identify and make a reassessment of the prospects of development of the most important economic mechanism.
4. Ideological - the formation and stabilization of a particular world view clear that the interests of the whole society.
Microeconomics - the science, the object of which is a separate business entity.The object of study in this section are the relations between the subjects regarding the use of limited resources.The objective of this course - to organize, summarize and clarify all the microeconomic factors.