Category: 1. Introduction

As the resources available around us are scarce, we cannot satisfy all of our needs and wants. And even if all the resources in the economy are utilized in the best possible manner, their capabilities are restricted due to scarce resources. Therefore, we are forced to make economic decisions and choose among alternate goods and…

What is Opportunity Cost? Opportunity cost can be defined as the potential benefit that an individual misses out on by choosing one option over another. When an individual prefers one alternative over another, then the non-absorbed profit of the latter alternative is the opportunity cost. Opportunity cost generally remains overlooked and creates a barrier for…

A number of activities happen around us in our daily life, such as activities performed in shops, offices, hospitals, etc. The collection of these organisations and institutions is known as an economy. These units allow human beings to earn and simultaneously help them to produce goods and services for their use. An economy provides living to the…

We all know that human wants are unlimited, but the means to satisfy these wants are limited. Therefore, all the wants cannot be fulfilled. An economic problem means the problem of making choices occurs because of the scarcity of resources. It arises because people have unlimited wants, but the means to satisfy them are limited. …

Microeconomics and macroeconomics are two branches of economics that study different aspects of the economy, but they are closely related. Microeconomics focuses on the behavior of individuals within the economy, such as households, firms, and industries. However, Macroeconomics deals with the economy as a whole. What is Microeconomics? Microeconomics is a branch of economics studying the behaviour of an individual…

Microeconomics and Macroeconomics are two branches of economics that study different aspects of the economy. Microeconomics zooms in on the decisions made by individuals and businesses, while macroeconomics zooms out to look at the broader picture of how the economy functions as a whole. What is Microeconomics? Microeconomics is a branch of economics studying the behaviour…

Microeconomics is a branch of economics studying the behavior of an individual economic unit. Adam Smith is known as the father of economics and microeconomics. Microeconomics help in contemplating the attributes of different decision-makers in an economy like individuals, enterprises, and households. In simple terms, microeconomics help in understanding why and how different goods have different…