Question

Characteristics of microeconomics

Answer 1

Characteristics of microeconomics are-

1. Microeconomics is an economic theory that is interested in the study of the behaviour of individual components or units of a country such as individual income, individual output of an industry etc.
2. The tools of microeconomics are demand and supply which determine the prices of individual products and their production in individual markets such as automobiles.
3. There is a limited accumulation or aggregation in microeconomics.
4. An example of microeconomics is to determine the market demand of a product by determining the individual demand of all consumers of that product.

Note:

Microeconomics is different from macroeconomics as macroeconomics deals with the study of aggregates or sum of all components of an economy. Examples include employment and national income.