Maharashtra State BoardHSC Arts 12th Board Exam
Advertisement Remove all ads

Give Reason Or Explain the Following Statement:Micro Economic Theories Based on Certain Assumptions. - Economics

Give reason or explain the following statement:

Micro economic theories based on certain assumptions.

Advertisement Remove all ads

Solution

Microeconomic theories are based on certain assumptions.

Ans. Yes, I agree with this statement,

  1. Micro Economics makes partial equilibrium analysis. Micro economics is based on the assumption ‘Ceteris paribus’ (which means ‘other things being constant).
  2. Microeconomics also assumes conditions of full employment, pure capitalism, perfect competition, etc. in an economy,
  3. Thus, we can conclude that the Microeconomic theories are based on certain assumptions. 
Concept: Assumption of Micro Economic Analysis
  Is there an error in this question or solution?
Advertisement Remove all ads

APPEARS IN

Advertisement Remove all ads

Video TutorialsVIEW ALL [1]

Advertisement Remove all ads
Share
Notifications

View all notifications


      Forgot password?
View in app×