Micro economics studies individual economic unit. HSC ECONOMICS XII GIVE REASON.

i. The term Micro Economics is derived from the Greek work “Mikros” which means “Small”. Microeconomics gives a detailed analysis of one part of the economy or society. It studies the behaviour of individual units of the economy, such as households, firms, industries and markets.

ii. Micro economics is concerned with the study of behaviour of individual element(s) of an economy, whereas, macroeconomics concerned with the study of behaviours of an economy as whole.