Microeconomics - Basics: New Way Learning Microeconomics in the 21st Century Era

Abstract

The 21st Century witnessed a spectacular change in living standards, especially, in lifestyle of people in most of the countries, particularly developed and developing countries in the world. In this age and day, like many other sectors, service sector is carried out in a multifaceted, competitive and rationality manner that is characterized by evolving many factors, which are very often unpredictable.This is an era of business-mentality-society where people behave rationally without emotion.Thus, effective utilization of Information Technology (IT) can play important roles in today’s market competition to promote service-sector products for sustained revenues. For a fruitful outcome, both branches of economics: microeconomics and macroeconomics are crucial. In practice Microeconomics studies the behaviors of individual households, firms and Govt. It further studies the interactions and the choices they make. On the other hand, Macroeconomics deals with nation’s economic policies that evolve from issues such as employment / unemployment, monetary system, inflation etc. In other words, Macroeconomics is the study of the behavior of the overall economy. With the aforementioned reality of the 21st Century human society, emphasizing innovation in designing economics-course itself and then train students in classroom are becoming crucial in today’s competitive market. This raises questions: a. Why should you study economics? b. How can this book be helpful to you? c. Can it be helpful in classroom and beyond? d. Can it facilitate good grades for the course? e. Can it help future professionals to compete in market place? Answering the first question posed, this book lays out four reasons that support study of economics. The reasons are: Firstly, studying economics can be helpful in understanding the world we live in. History suggests that economics has made many advances in understanding the role of innovation. For example suppose the innovation or ideas does not have application; it is worthless to you or to anyone else, do you still continue your efforts? Here comes economics. Economics is used to justify decision(s) about putting efforts for a proposed research or innovation. It can help to examine the worthiness continuing such efforts so that cost-effective decisions can be taken. Microeconomics deals with household behaviors, individual’s choice etc. It is the study of choice under conditions of scarcity where individual faces limitation of time and spending power. On the contrary, they have virtually unlimited wants. Therefore, scarcity of resources and efficiency issues dominate human choices or decisions. Economists study the choices we make and also the consequences of these choices and then prescribe the best choices among all possible options. Readers should recognize: economics is the father of all sciences. This is because any decisions faced by humankind are influenced by the theme of economics. For example humankind’s innovation cannot be survived in market competition unless it has economic values in usages. Secondly, it will make you a smarter participant in the economy no matter where you live. Take an example: going to school is a time consuming. Do you still prefer to go to school? If answer is yes, then before you get into any program in school, you decide which one is worthy of your time. All these decisions or choices can be evaluated based on little skills in economics. Thirdly, studying economics can give readers a better understanding of both the potential and limits of economic policy. Finally, it can make you a better equipped higher skilled individual who can be instrumental in completing assigned tasks and can serve as policy advisor to both private and government entities. My answer to the rest of the questions (other three questions) can be summarized as follows I assure you that reading this book can facilitate you better understanding of microeconomics theories and to think critically wearing an eyeglass of economics in the area of social and behavioral sciences. Reading this book ahead of class can facilitate your better understanding in classroom. Having this book can make it easier than “not having” it in a case of following class lectures regularly. It can facilitate you to participate in discussions on economic issues in classroom. It can secure an effective outcome in classroom and then for securing better grade point for the course.