AP Micro Econ. When you hear this, you just think of the hard AP subject that is needed just for tests. However, Micro Economy is actually a very deep and profound study that is used in our daily lives. It is used by many people around the world, even by ordinary people like us. Let's see how Mirco Econ is used in our daily lives.
Micro Econ is the study of how individuals and businesses make choices on how to best use limited resources. The field interests investors as individual consumer accounts for about two-thirds of the U.S. economy. Most people have a limited amount of time and money. They cannot buy or do everything they want, so they make calculated decisions on how to use limited resources to maximize personal satisfaction. Similarly, a business also has limited time and money. Businesses also make decisions that result in the best outcome for maximum profit.
For example, to rent an apartment, first you must determine a budget. For this, you will have to take into account your income and how much money you are looking to spend on housing, in such a way as to maximize your utility, or satisfaction. If you allocate too much of your income to rent, you will not have a lot of money left for other expenses. Thus, you will have to determine the maximum amount of money you are willing to invest. These are parts of micro economics.
Like I said above, Micro Econ is widely used in our lives. I hope you know this and use them efficiently.
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