The Principles of Microeconomics

Abstract

Economics can be classified into two primary branches: microeconomics and macroeconomics. Microeconomics is primarily focused on the actions of individual economic entities, encompassing consumers, employees, investors, landowners, and business enterprises, or essentially any entity contributing to the functioning of the economy. In the realm of microeconomics, the rationale behind the economic decisions made by these entities is explored. For instance, it elucidates the factors influencing consumers' choices when making purchases, taking into account fluctuations in prices and income. It also examines how businesses determine the number of employees to hire and how employees choose where to work and the extent of their labor output.