Analyzing Microeconomic Policies in Response to the COVID-19 Crisis

This essay examines the application of microeconomic policies during the COVID-19 pandemic. It begins by introducing microeconomics and its key areas, such as scarcity, supply and demand, cost and benefits, and incentives. The essay then focuses on how microeconomic policies were used to address the economic challenges of the pandemic, including cost-benefit analysis in healthcare, social protection schemes, and the impact on businesses. It analyzes the success and failures of these policies, considering factors like infrastructure and development levels. The essay concludes by summarizing the findings and highlighting the importance of understanding microeconomic principles in responding to economic crises. The essay also discusses the impact of the pandemic on business organizations and the need for structural changes in microeconomic policies to address climatic changes and corporate social responsibility.

Introduction to
microeconomic
principles
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Table of Contents
INTRODUCTION .........................................................................................................................3
MAIN BODY...................................................................................................................................3
CONCLUSION .............................................................................................................................5
REFRENCES...................................................................................................................................6
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INTRODUCTION
The COVID-19 pandemic had drastic impacts on the global economy and different
policies were implemented by governments to support their citizens in such difficult times and
ensure quick economic recovery of their nation. Microeconomic policies were also used for
supporting economic growth of countries amid the COVID-19 pandemic and support industries
in getting back to their pre-pandemic economic efficiency. (Bosshardt, W. and Chiang, E.P.,
2018). This essay looks at the different microeconomic policies which were implemented for
dealing with the COVID-19 crises and their success or failure in attaining this objective.
MAIN BODY
Microeconomics is the area of economics which is concerned with single factors and
impact of individual decisions on the economic environment. It is an important area of
economics because it helps understand the practical workings of economy. The four key areas of
microeconomics are scarcity, supply and demand, cost and benefits and incentives. These
microeconomics areas provide explanations for human decision making and are used by
government authorities, financial institutions, commercial banks and businesses to make sound
decisions.
Microeconomic policies are used by institutions in both private as well as the public
sector to support effective financial management. In order to flatten the curve the microeconomic
policy which can be applied involves looking at the pandemic from the perspective of costs and
benefit. Primarily COVID-19 is a healthcare crises and evaluating the cost and benefit of specific
healthcare policy by using microeconomics data is beneficial for developing sound government
policies and regulations to curb the spread of the virus. (Calimeris, L., 2018)
It needs to be considered that the cost benefit differences of various public health
measures differ in different countries such as a developing country with less advanced
infrastructure and reliance on others or a developed country with advanced infrastructure and
healthcare facilities. In context of economic policy formulation, microeconomic data about cost
and benefit comparison between different healthcare measures can be utilized to implement the
most affordable measure for recovering from the pandemic.
This is suitable for developing sound economic policies. The microeconomic policy
which is related to the cost benefit area of microeconomics involves implementing social
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protection schemes for vulnerable communities so that they are able to get back into the labor
force after the setback caused by the pandemic. The success of this economic policy is different
in different regions as the economic environment of a specific country is dependent on the level
of development in the country. (Nekipelov, A.D., 2019.)
Developing regions may face more challenges in providing suitable social protection
schemes to vulnerable communities as their is not much developed infrastructure to act as a
foundation source for effectively implementing such schemes. On the other had developed
countries are able to utilize advanced infrastructure increasing the success of such protection
schemes. There are also different factors associated with implementing social protection schemes
on the basis of microeconomics data. people in developing countries may live in crowded
conditions which increases barriers in policy success. (Morselli, A., 2018)
It has been analyses that the success and failure of the microeconomics is dependent over
the various aspect of the change in government policies. The effect of the pandemic is different
within the busies organizations. It is very important to anywise the the structural change over the
policies can impact in the microeconomics through deal with the pandemic. The microeconomics
have a impact over the business organization after the pandemic. It has been observed that the
pandemic have impacted in the failure for the buskins organization because of the micro
economic policies which have been changed after the covid-19 situation. The prices of the
products and cervices has risen which has lead to the failure in order to produce the products and
services in an effective manner. (Dankiewicz, R. and Simionescu, M., 2020) This has also lead to
the failure within the purchase of the raw material because of the high inflation rate which has
imp[acted in a negative way. Where as it has been found that the companies related to
information technology were at the boon during the pandemic. As there was high demand of the
use of the technology for the various business organization which has lead to the success of the
business organization. It is very important to analyses the importance of the structural change
which is been required in the micro economic policies and this will impact in future. It is very
essential to analyses where the company will be successful or failure in order to the changes
because of the government policies in the economy. (Ost, C., 2018)
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It is very important to control over the climatic change which is due to the business
organization or their working operations of the products or services. The microeconomics
policies plays a major role in controlling over the climatic changes which is made by the
organization. As the corporate social responsibility and the government policies have lead to the
compulsion for the companies to practice in order to save environment. This is the most
important aspect which need to be conducted by the organization in order to achieve goals and
objectives.
CONCLUSION
From the above report it has been concluded that microeconomics is defined as the part
of economies which is concerned with single factors and the effects of the decisions of an
individual within the economy. It is very important for an individual to know of the various
microeconomics policies which can impact the business organization. It is observed that there is
the change which need ot be followed in order to be effective and efficient.
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REFRENCES
Books and Journals
Bosshardt, W. and Chiang, E.P., 2018. Evaluating the effect of online principles courses on long-
term outcomes. International Review of Economics Education, 28, pp.1-10.
Calimeris, L., 2018. Effects of flipping the principles of microeconomics class: does scheduling
matter?. International Review of Economics Education, 29, pp.29-43.
Dankiewicz, R. and Simionescu, M., 2020. THE INSURANCE MARKET IN ROMANIA: A
MACROECONOMIC AND A MICROECONOMIC APPROACH. Transformations in
Business & Economics, 19(1).
Morselli, A., 2018. From the Nation-State to a World Society: An Institutional Reading of
Globalization. Journal of Economic Issues, 52(3), pp.653-675.
Nekipelov, A.D., 2019. The crisis in economics, its nature, and ways to recover. Herald of the
Russian Academy of Sciences, 89(1), pp.23-33.
Ost, C., 2018. Inclusive economic development in the urban heritage context. World heritage
and sustainable development: new directions in world heritage management, pp.53-67.
Smith, S., 2018. A computer simulation of economic growth and technical progress in a
multisectoral economy. In Evolutionary Theories of Economic and Technological
Change (pp. 209-238). Routledge.
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