Explain about the specification of economics environments, Microeconomics

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Explain about the specification of economics environments.

Specification of Economic Environments:

The primary step for studying an economic issue is to identify the economic environment. The specification onto economic environment can be divided within two levels as:

i. Explanation of the economic environment, and

ii. Characterization of the economic environment.

To do these well, the explanation is a task of science and the characterization is a work of art. The more specific and accurate the explanation of the economic environment is, the higher the prospect is of the correctness of the theoretical conclusions. The most refined the characterization of the economic environment is, the easier and simpler the arguments and conclusions will acquire.


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