microeconomics

American  

[mahy-kroh-ek-uh-nom-iks, -ee-kuh-] / ˌmaɪ kroʊˌɛk əˈnɒm ɪks, -ˌi kə- /

noun

(used with a singular verb)

1. the branch of economics dealing with particular aspects of an economy, as the price-cost relationship of a firm.

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microeconomics British  

/ ˌmaɪkrəʊˌiːkəˈnɒmɪks, -ˌɛkə- /

noun

1. (functioning as singular) the branch of economics concerned with particular commodities, firms, or individuals and the economic relationships between them Compare macroeconomics

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microeconomics Cultural  

1. Economic analysis of particular components of the economy, such as the growth of a single industry or demand for a single product. (Compare macroeconomics.)

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Other Word Forms

• microeconomic
  adjective
• microeconomist
  noun

Etymology

Origin of microeconomics

First recorded in 1945–50; micro- + economics

Compare meaning

How does microeconomics compare to similar and commonly confused words? Explore the most common comparisons:

• macroeconomics vs. microeconomics

Explanation

Microeconomics is the study of of how people use money and other resources on a small-scale, individual level. If you're interested in why people spend, you might want to study microeconomics. The field of economics is often divided into two branches, microeconomics and macroeconomics. While the second focuses on the big-picture effects of a national economy, microeconomics is concentrated on the way people and businesses make financial decisions, including things like what individual consumers choose to buy at the grocery store. The word hints at this small-scale focus with its prefix micro-, "small."

Example Sentences

The Lauder Business School said it was affiliated since 2014 with the Microeconomics of Competitiveness Affiliate Network developed by Harvard professor Michael Porter at the university’s Institute for Strategy and Competitiveness.

From Washington Times • Dec. 27, 2023

You could take Intro to Microeconomics, just to show everyone who ever told you’d never learn anything useful at a liberal arts school.

From Slate • Apr. 8, 2014

Their first collaboration, "The Cartoon Introduction to Economics, Volume One: Microeconomics," has been translated into nine languages.

From Seattle Times • Jun. 22, 2012

Microeconomics 101 says that this is an externality and that something needs to be done to limit the risk-taking of implicitly insured institutions.

From New York Times • Jun. 1, 2010