Micro Economics and Macro Economics.

Micro Economics and Macro Economics|Who first used the word "Micro"?  Meaning and Definitions.

In the previous blog. We have already discussed Meaning and Emergence of Economics. If you haven't read. Click and read.

Meaning of Economics.

Now in this blog we will discuss branches of study of Economics :
1. Micro-economics
2. Macro-economics.

The term micro economics and macro economics was first used by a Norwegian economist, Ragnar Frich in 1993.

Meaning of Micro Economics.

The English word 'Micro' is derived from Greek word 'mikros' which means small. 

Micro Economics is that branch of economic science which studies individual economic units like an individual household, Individual family, individual firm. individual industry, pricing of a firm, wages of a worker) profit of an entrepreneur and the like. 

In other words, micro economics deals with a small component of the national economy of a country. It studies the economic behaviour of the individual unit rather than all the units combined together.

Micro Economics has been defined by various economists but hear I am giving you only one definition.

1. K.E. Boulding- "Micro-economics is the study of particular firms, particular households, individual prices, wages, incomes, individual industries and particular commodities."

Meaning and Definition of Macro Economics 

The English word 'Macro' is derived from Greek word 'Makros' which means large. 

Thus macro economics is that branch of economic science which studies economic issues at the aggregate level or at the level of whole economy.

In fact, it is a study in aggregates. It deals with the behaviour of not one particular unit but of all the units combined together. It is a study of economic system as a whole. It studies the overall conditions of an economy, say, total production, total consumption, total saving, total investment, national income, level of total employment, general price level, balance of payments, quantity of money, public expenditure, public revenue, taxation, government budget, monetary policy etc.

Definition of Macro-economics

K.E. Boulding- "Macro-economics deals not with individual quantities but with aggregate of these quantities, not with individual incomes but with national income, not with individual prices but with price levels, not with individual outputs but with the national output."