Explanation of Microeconomics


MICROECONOMICS
Microeconomics (from Greek prefix mikro- meaning "small") is a branch of economics that studies the behavior of individuals and firms in making decisions regarding the allocation of scarce recourses  and the interactions among these individuals and firms.
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 eficient 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.[4] Particularly in the wake of the Lucas Critique, much of modern macroeconomic theory has been built upon microfoundation—i.e. based upon basic assumptions about micro-level behavior.

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1.      Microeconomic is a branch of economics that studies the behavior of individuals and firmsin making decisions regarding the allocation of scarce resources and the interactions among these individuals and firms.
Kalimat ini adalah bagian dari explanation karena berada pada awal kalimat.
2.      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.
Di kalimat ke-2 ini adalah bagian dari adverb karena terdapat penjelasan awal dalam kalimat ini.
3.      Microeconomics shows conditions under which free markets lead to desirable allocations.
Di kalimat ini adalah bagian dari explanation Karena menunjukkan sebuah kondisi dibawah suatu penjelasan.
4.      It also analyzes market failure, where markets fail to produce efficient results.
Di kalimat ini adalah bagian dari declaration karena dalam kalimat itu merupakan suatu pernyataan bahwa pasar tersebut dianalisa gagal.

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