Definition

The branch of economics that focuses on the behavior and decisions of individual units, such as businesses and households, rather than the economy as a whole.

Example

Microeconomics helps us understand how individual consumers make choices about spending their money.

Conversation

Have you ever taken a class on microeconomics?

No, I haven't, but I've heard it's really interesting.

Yeah, it focuses on how individual businesses and consumers operate.

That sounds cool! I might look into it for next semester.

Synonyms & Antonyms

Root Explanation

Microeconomics → It is formed from "micro-" (from Greek "mikros", meaning small) and "economics" (from Greek "oikonomia", meaning household management or economy). The term refers to the study of economic behavior on a small scale, such as individual consumers and businesses.

Memory Tip

Think of 'small' ('micro-') and 'household management' ('oikonomia') to remember that microeconomics focuses on the economic activities of individuals and small groups.

Visually Confused Words