Question

(3)Write short notes (3-4 sentences long) about the following concepts:

1.economic system

distinguish between the following:

1. micro and macro economics

​​​​​​​2. efficiency and equity

3. market and market places

Answer 1

1) Microeconomics focuses primarily on economic concerns of individuals in a nation with regard to that how they use scarce means or resources at their disposal for the satisfaction of their unlimited ends. On contrast the macroeconomics gives a wider view and is study of economy as an aggregate. Macroeconomics can be termed as the aggregation of microeconomics

2) Efficiency refers to deriving the maximum benefits for the society from its scarce resources. Equity refers to an even distribution of wealth among the people in society thus arises when society distributes the economic resources equally among the people

3) The market is defined as the whole market for a good, thus acts as the medium that permits the sellers and buyers to purchase a specific product or service from the shopkeeper. On other hand the marketplace refers to a place where financial transactions takes place, thus includes the activities for buying and selling goods and often is a small place compared to market