{"id":3434,"date":"2021-07-04T12:53:04","date_gmt":"2021-07-04T07:23:04","guid":{"rendered":"https:\/\/scholarsclasses.com\/blog\/?p=3434"},"modified":"2025-10-07T12:38:12","modified_gmt":"2025-10-07T07:08:12","slug":"microeconomic-definition","status":"publish","type":"post","link":"https:\/\/scholarsclasses.com\/blog\/microeconomic-definition\/","title":{"rendered":"Microeconomic Definition | Historical Review of Microeconomics"},"content":{"rendered":"\n

Microeconomic Definition<\/strong><\/h2>\n\n\n\n

Microeconomics<\/a> and Macroeconomics are the two main branches of modern economics.
The term \u2018micro\u2019 is derived from the Greek word, \u2018Mikros\u2019 which means small or a millionth part. <\/p>\n\n\n\n

The term \u2018macro\u2019 is derived from the Greek word, \u2018Makros\u2019 which means large. These terms were coined by Norwegian Economist Ragnar Frisch of Oslo University in 1933.<\/p>\n\n\n\n

Meaning of Microeconomics:<\/strong><\/mark><\/h3>\n\n\n\n

Micro means a small part of a thing. Microeconomics thus deals with a small part of the national economy. It studies the economic actions and behavior of individual units such as an individual consumer, individual producer or a firm, the price of a particular commodity or a factor, etc.<\/p>\n\n\n\n

Define Microeconomics.
<\/strong>1) Maurice Dobb – \u201cMicroeconomics<\/a> is in fact a microscopic study of the economy.\u201d<\/p>\n\n\n\n

2) Prof A. P. Lerner – \u201cMicroeconomics consists of looking at the economy through a microscope, as it were, to see how the millions of cells in the body of economy \u2013 the individuals or households as consumers and individuals or firms as producers play their part in the working of the whole economic organism.\u201d<\/p>\n\n\n\n