Definition

Relating to the study of individual economic units, such as households and businesses, rather than the economy as a whole.

Example

Microeconomic factors can greatly influence a company's pricing strategy.

Conversation

I just started learning about microeconomic principles in my class.

That sounds interesting! What have you covered so far?

We discussed how individual choices affect the economy on a smaller scale.

Nice! Understanding microeconomic factors can really help with real-life decisions.

Synonyms & Antonyms

Root Explanation

Microeconomic → It is formed from "micro-" (from Greek "mikros", meaning small) and "economic" (from Greek "oikonomikos", meaning pertaining to household management). The term refers to the study of small-scale economic factors, such as individual markets and consumers.

Memory Tip

Think of 'small' ('micro-') factors that affect 'household management' ('economic') to remember that microeconomic focuses on individual economic units.

Visually Confused Words