Get premium membership and access questions with answers, video lessons as well as revision papers.
Micro economics - deals with the economic decisions of individuals and firms. It concerns itself with the determination of optimal operating strategies of a business firm. These strategies include profit maximization strategies, product pricing strategies, strategies for valuation of firm and assets etc. The basic principle of micro economics that applies in financial management is marginal analysis. Most of the financial decisions should be made taken into account the marginal revenue and marginal cost. So, every financial manager must be familiar with the basic concepts of micro economics.
Macro economics - deals with the aggregates of the economy in which the firm operates. Macro economics is concerned with the institutional structure of the banking system, money and capital markets, monetary, credit and fiscal policies etc. So, the financial manager must be aware of the broad economic environment and their impact on the decision making areas of the business firm.
Amberuti answered the question on January 21, 2019 at 18:17
- Explain the ways in which the income elasticity of demand coefficient is interpreted(Solved)
Explain the ways in which the income elasticity of demand coefficient is interpreted
Date posted: January 16, 2019. Answers (1)
- What is income elasticity of demand?(Solved)
What is income elasticity of demand?
Date posted: January 16, 2019. Answers (1)
- Price elasticity of demand coefficient can be interpreted in several ways. Briefly explain them.(Solved)
Price elasticity of demand coefficient can be interpreted in several ways. Briefly explain them.
Date posted: January 16, 2019. Answers (1)
- Differentiate between point and arc elasticity of demand. (Solved)
Differentiate between point and arc elasticity of demand.
Date posted: January 16, 2019. Answers (1)
- What is the usefulness of the concept of elasticity in economics?(Solved)
What is the usefulness of the concept of elasticity in economics?
Date posted: January 16, 2019. Answers (1)
- Highlight and explain the determinants of elasticity of supply(Solved)
Highlight and explain the determinants of elasticity of supply
Date posted: January 16, 2019. Answers (1)
- Highlight the determinants of price elasticity of demand(Solved)
Highlight the determinants of price elasticity of demand
Date posted: January 16, 2019. Answers (1)
- Give the consequences of minimum price policy by the government(Solved)
Give the consequences of minimum price policy by the government
Date posted: January 16, 2019. Answers (1)
- Highlight the consequences of the maximum trade policy by the government.
(Solved)
Highlight the consequences of the maximum trade policy by the government.
Date posted: January 16, 2019. Answers (1)
- Give any conditions for disequilibrium of demand and supply.
(Solved)
Give any conditions for disequilibrium of demand and supply.
Date posted: January 16, 2019. Answers (1)
- What is the equilibrium of supply and demand?(Solved)
What is the equilibrium of supply and demand?
Date posted: January 16, 2019. Answers (1)
- Highlight the characteristics of an oligopolistic market(Solved)
Highlight the characteristics of an oligopolistic market
Date posted: January 16, 2019. Answers (1)
- Examine the impacts of extra regional integration in Africa (Solved)
Prospects of extra regional integration in Africa
Date posted: January 15, 2019. Answers (1)
- Discuss the concept of factor pricing(Solved)
Discuss the concept of factor pricing.
Date posted: December 30, 2018. Answers (1)
- Ways through which the government could influence the allocation of resources in a free market economy(Solved)
Ways through which the government could influence the allocation of resources in a free market economy
Date posted: December 30, 2018. Answers (1)
- Distinguish between general and partial equilibrium.(Solved)
Distinguish between general and partial equilibrium.
Date posted: December 15, 2018. Answers (1)
- When is an economy said to have attained Pareto Optimality?(Solved)
When is an economy said to have attained Pareto Optimality?
Date posted: December 15, 2018. Answers (1)
- What is meant by externalities in general equilibrium?(Solved)
What is meant by externalities in general equilibrium?
Date posted: December 15, 2018. Answers (1)
- Describe the use of Edgeworth box in welfare economy(Solved)
Describe the use of Edgeworth box in welfare economy.
Date posted: December 15, 2018. Answers (1)
- What is marginal rate of substitution?(Solved)
What is marginal rate of substitution?
Date posted: December 13, 2018. Answers (1)