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

PredictIt makes its data publicly available, and dozens of research institutions have made use of it for studies of microeconomics and political behavior.

From Washington Post • Jan. 24, 2023

But the B plus he earned in intermediate microeconomics — the last of his prerequisite courses — was not enough to get him over the bar, and he says he ended up with a 2.93.

From Salon • Jul. 10, 2022

The money will back education and research efforts in applied microeconomics, business, digital medicine, global health, neuroscience, and translational research programs at the university’s Feinberg School of Medicine.

From Seattle Times • Dec. 31, 2021

Bob Swick, who taught Jiménez in a microeconomics class, was the only professor to connect the dots.

From New York Times • May 7, 2021

Some calculations used by macroeconomic experts can be adapted to the field of microeconomics and even personal finance; such is the case with marginal propensity to consume and marginal propensity to save.

From Encyclopedia.com • Apr. 9, 2018