Explain micro and macro economics including their scope.

Micro-economics
The term micro has been derived from the Greek word micros. Which means small .in
micro-economics attention is concentrated on a very small part of individual units. The
micro-economics is the study of “the particular firms, house hold, individual prices,
wages, incomes ext. it studies for example the motive of a business man in diverting his
capital from the cotton textile industry to the Weller industry for increasing the
production of commodity A rather than B. WIKKIAN FELLNER has termed micro
economics as the study of individual decision making units. It implies that an individual
buyer or seller’s behavior in the marketing the face condition of demand or supply of a
particular commodity, is the object of study in micro-economics

SCOPE OF MICRO-ECONOMICES:
Micro-economics analysis explains the allocation of resources assuming that the total
resources are given. The following chart given of view of the scope of micro-economics.

MACRO-ECONOMICES:
This also derived from Greek word macros, meaning large. It implies the study of
economics aggregates or the wholes. The problems like full employment, unemployment,
economic stability and economic growth cannot be accurately investigated through the
examination of infinitesimally Small units like individual consumer, producer, workers or
firms. The action of a single employer cannot have a perceptible impact upon the
employment situation of a country. The production or investment by a single firm is
unlike to generate cyclical fluctuations. The proper analysis of such problem requires an
aggregated thinking. Full employment, economic growth and instability are concerned
with entire economic system. Their analysis and solution in the right perspective can be
possible only if a macro approach and aggregative instrument of analysis and policy are
employed.

HANSON has interpreted macro economics as “that branch of economics which

considers relationship between large aggregated such as volume of employment, total
amount of saving and investment, the national income, etc.

This indicates that the scope of our analysis is not simply restricted to the investigation of
the total magnitude of the economic variable but their inter relations too are essential part
of the macro-economic analysis

What is managerial economics? Support your own answer with the various definitions
Answer: managerial economics is an applied branch of micro economics, which studies
the topic which are of great interest and importance to a manager these topics involve
component like demand, supply, production. Cost revenue, government regulation etc.
managerial economics is the application of the economic analysis to evaluate business
decisions. It concentrates on the decision process, decision model and decision variable at
the firm level is viewed as a micro-economics unit located within as industry, which
exists in the context of a given socioeconomic environment of business.

Managerial economics is concerned with economics with economics behavior of the firm
it is assumed that firm maximizes profit. In general managerial economics can Be used
by the goal oriented manager.

DEFINATIONS:

There are many managerial economics, some of them are

1. Prof Spencer Siquelman

“Managerial economics deals with integration of economics theory with business practice
for the purpose of facilitating decision making and forward planning”.

2. Prof Hague

“Managerial economics is concerned with using logic of economics mathematics and

statistics to provide ways of thinking about business decision problem”.

3. Mc Nair and Meriam

“Business economics and managerial consists of the use of economic”.