Q1. What is microeconomics? “It is impossible to separate microeconomics from macroeconomics”- Do you agree with this statement? Justify your answer with appropriate argument.

Ans: Microeconomics is derived from the Greek word ‘mikros’ meaning ‘small’. Microeconomics deals with the small individual units of the economy such as individual consumers, individual firms and small aggregates a group of individual units such as various industries or markets.

Thus, microeconomic theory seeks to determine the mechanism by which the different economic units attain the position of equilibrium, proceeding from the individual units to a narrowly defined group. Microeconomic analysis concerns itself with narrowly defined groups since it does not study the totality of behavior of all units in the economy. In other word, the study of economic system or economy as a whole lies outside the domain of microeconomic analysis.

Yes I agree with this statement that “It is impossible to separate microeconomics from macroeconomics”.
The terms microeconomics and macroeconomics have their origin in the early 1930s, when economists strove to gain an understanding of factors that created the Great Depression. Separate mechanisms to describe the actions of individuals and aggregate populations were first described by the Norwegian economist Ragnar Frisch (1895-1973) in 1933.
Frisch called these mechanisms "microdynamic" and "macro-dynamic." He wrote that micro-dynamic analysis seeks to "explain in some detail the behavior of a certain section of the huge economic mechanism" within specific parameters, while macro-dynamics gives "an account of the whole economic system taken in its entirety."

Microeconomics is generally the study of individuals and business decisions, macroeconomics looks at higher up country and government decisions. Macroeconomics and microeconomics, and their wide