LIMITATIONS OF MICROECONOMICS
LIMITATIONS OF MICROECONOMICS
AGGREGATE VARIABLES MAY NOT BE IMPORTANT NECESSARILY:
The aggregate variables which form the economics systems may not be of much significances,for instance,the national income of a country is the total of all individuals incomes ,a rise in national incomes does not mean that individuals incomes have risen,the increases in national incomes mights be the results of the increase in the incomes of a few rich peoples in the country ,thus a rise in the national incomes of this types has little's significance from the points of view of the community.pro.boulding call these three difficultities as macroeconomics paradoxes"which are true when applied to a single individuals but which are untrue when applied to the economics systems as a whole.
AGGREGATE VARIABLES MAY NOT BE IMPORTANT NECESSARILY:
The aggregate variables which form the economics systems may not be of much significances,for instance,the national income of a country is the total of all individuals incomes ,a rise in national incomes does not mean that individuals incomes have risen,the increases in national incomes mights be the results of the increase in the incomes of a few rich peoples in the country ,thus a rise in the national incomes of this types has little's significance from the points of view of the community.pro.boulding call these three difficultities as macroeconomics paradoxes"which are true when applied to a single individuals but which are untrue when applied to the economics systems as a whole.
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