Economic Analysis

What are the differences amid the microeconomic and macroeconomic perspectives on the economy? Microeconomics is the annex of economics which caters with alone firms, consumers, and industries as they produce, buy and advertise appurtenances and services. Macroeconomics, on the alternative hand, deals with changes in the all-embracing akin of bread-and-butter activity, absorption rates, unemployment, and barter ante to affect the aggressive strategies of alone firms and industries. It caters to the behavior of individuals aggregated into altered sectors in the economy. SQ. What are the four above types of markets in microeconomic analysis? What are the key characteristics that analyze these markets? Following are the four above types of markets in microeconomics forth with their characteristics Absolute antagonism Ample cardinal of firms Each close produces an identical acceptable or account Accessible for new firms to access the bazaar Complete advice to all buyers and sellers in the bazaar Monopolistic antagonism Each close produces a acceptable or account that, in some cogent way, is altered Relatively accessible for new firms to access the market Imperfect advice Oligopoly Few large, mutually interdependent, firms Firms may aftermath agnate or awful differentiated articles Cogent barriers to new access Monopoly One close bearing a acceptable or account with no acceptable substitutes New access is abandoned SQ. Why do economists accept that firms are price-takers in the archetypal of absolute competition? How does this appraisement behavior alter from that in the alternative bazaar models? In a altogether aggressive bazaar there are so abounding firms bearing the aforementioned artefact that no distinct close has any access on the bulk of the product. The bazaar bulk is bent by the accumulation of all producers and consumers who acquirement the goods. Therefore, an alone ambassador will advertise any bulk of artefact at the bazaar bent bulk and will not be able to intelligence its bulk by affairs added at a bottom price. Thus, economists characterize a altogether aggressive close as a price-taker. The appraisement behavior of alternative firms alter from altogether aggressive firms for they accept some amount of bazaar adeptness or the adeptness to access their prices and advance alternative aggressive strategies that acquiesce them to acquire ample profits over best aeon of time. SQ. In macroeconomics, what are the bristles above categories of spending that accomplish up GAP? Are all bristles categories added calm to actuate GAP? Following are the bristles categories of spending that accomplish up GAP: 1 . C = Personal expenditures by all households on abiding goods, nondurable appurtenances and casework 2. I = Gross clandestine calm advance spending on nonresidential structures, equipment, software, residential structures and inventories. 3. G = Government burning expenditures and gross advance 4. X = Total consign spending 5. M ?Total acceptation spending All these categories are not added to actuate GAP. M is subtracted from X to get F (net consign spending) which is added to C, l, and G to acquire GAP. GAP=C+I+G+(X-M) SQ. Discuss the differences amid budgetary and budgetary policies? Budgetary action involves changes in demanding and spending by a country's government that can be acclimated to either activate or arrest the economy. Budgetary action involves accommodation taken by the country's axial coffer that includes absorption ante and the accumulation of funds. Application Question (a) Absolute antagonism (b) Oligopoly (c) Monopoly (d) Monopolistic competition

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