Micro Economics – Importance, Limitations and Difficulties

Introduction to Micro Economics

In the present times, the study of economics is done from two viewpoints namely Micro and Macro. From the first viewpoint, the economic problems of various units, like – individuals, families, firms etc. are studied individually, whereas; from the second viewpoint, the same units of persons, families, firms etc., are studied in a combined form. Micro Economics is concerned with a specific, particular or an individual whereas; Macro Economics is concerned with a group.

Meaning

The word micro means very small portion. From this point of view, micro economics is the study of specific economics units of the whole economy. Under this, a commodity, a consumer, a firm or an industry is studied individually.
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