What is the difference btw Advanced & Applied Microeconomics?

2 ANSWERS

1. kate
   

   Microeconomics is an important branch of economics that deals with the behavior of how an individual modern household and firms make decisions to manage limited resources. Generally, it applies on the markets where goods and services are being bought and sold. Microeconomics analyze that how these decisions and behaviors affect the supply and demand for goods and services, which determines prices, and how prices, in turn, determine the quantity supplied and quantity demanded of goods and services. While in the macroeconomics we study the issues of growth, inflation, and unemployment. Microeconomics also studies the common effects of national economic policies on the aforementioned aspects of the economy. The main objective of microeconomics is to analyze the market procedures that establish relative prices amongst goods and services and allocation of limited resources amongst many alternative uses. Additionally Microeconomics also studies market failure, where markets fail to create efficient results, and describes the theoretical conditions required for perfect competition. The other important fields of study in microeconomics include general equilibrium, markets under asymmetric information, decisions under uncertainty and economic applications of game theory. While on the other hand the applied microeconomics comprises a range of specialized areas of study, many of which draw on methods from other fields. In applied economics the basics of price theory is used. Industrial organization and regulation analyze the topics ,for instance the entry and exit of firms, innovation, role of trademarks.

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2. Guest20840604
   

   When one of his team members left Google to work for Yahoo, the Google manager commented slyly that the move 'would raise the average quality of at both companies.' Explain as an economist would, what the manager was implying about the quality of the employees at Yahoo and Google and the competence of the defecting team member.

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