What is microeconomics? What are the features of microeconomics? |
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| Ans : Microeconomic:The term ‘Microeconomic’ is derived from the Greek word ‘Mikros’ which means small. Microeconomics deals with a small part of the national economic of a country. Microeconomics is the study of economic action of individuals and small group of individuals.
According to K.E Boulding, “Microeconomics is the study of particular form, particular household individual prices, wages, income, individual industries, and particulars commodities.”
Features of Microeconomic
a) It is individualistic economics.
b) It is concerned with the behavior individual economic entities. Such as individual household, individual firms, individual market etc.
c) It is also called price theory or value.
d) It’s objective is to analyze the process by which scarce resources are allocated among alternative uses.
e) It analyzes economic phenomena under the ceteris paribus assumption. Hence it is a method of practical equilibrium.
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