Microeconomics Topics Covered The microeconomics topics covered in this paper include an analysis of the determinants of an economic output, the levels of employment, the decisions made concerning different markets, government regulations on prices, financial markets and market failures. Analysis The paper agrees with facts learnt about microeconomics in a number of ways. The state of output and employment factors is very important according to the paper. For good outputs to be realized in an economy, production levels must increase. This is because the inputs must be converted to outputs so that a rise in an economies total output can be realized. For the production to rise, there must be the right people employed so that their efficiency and effectiveness in terms of their overall output is maximized. Lack of consideration of these factors resulted to the recession that has been witnessed in the world recently. An economy that has employed wrong people to do their work will result into slow production and reduced qualities of products. Such products will not be considered best by the consumers. The producers will loose many consumers to their competitors. Microeconomics points on the decisions made by consumers on firm’s products and goods. These decisions lead to the consumers identifying the right markets where they can have their goods and services. This agrees with the aspects of micro economy since the government has an influence on these decisions. Also the issues of market failures pointed as aspects that lead to the financial crisis is true in micro economics since when a market fails then there is a decline in economic growth. The government’s influence on market failures which exist cannot be guaranteed. This is because the government can do very little to correct such failures. This is evident in the fact that some governments were not able to contain some economic meltdowns in the past. The successes on government regulation and deregulation has been witnessed in the airline, crude oil, pricing, gas and telecommunication sectors compromised by the failures in the market as pointed out by Krugman (3) most of the failures have been attributed to regulated financial institutions that purchased and securitized and invested in the subprime and Alt-A mortgage which was the sole contributor to the collapse in the finances. This led to large losses realized recently in different economies. The main question is; should there be the government’s regulation on economies? And to what extent should the government influence the economy? This can be understood in some areas since when the set of rules are well enacted and properly enforced, producer’s actions in the economy can be controlled. Issues of pricing of products which has a direct influence to the consumers will be controlled so that the producers cannot increase the prices at will. Conclusion It is evident from the paper that production is tied to the outcome and the employment levels in any economy. This has a direct influence on the supply and the demand which directly dictates the prices of products in the market. The government’s regulations and decisions should be aimed at minimizing failures and instabilities’ in the markets of different economies. Works