GENERAL KNOWLEDGE

Detailed explanation-1: -The approach of microeconomics starts with the decisions of an individual about the allocation of time and income. The impact of incentives on individual choices is a key part of economics. The approach of microeconomics then looks at the interactions of individuals directly and in markets.

Detailed explanation-2: -Microeconomics is individualistic for the reason that it studies the individual units of the country, like household or a firm. It aims to determine the demand and supply of these individual units and hence is individualistic.

Detailed explanation-3: -Microeconomics studies the decisions of individuals and firms to allocate resources of production, exchange, and consumption. Microeconomics deals with prices and production in single markets and the interaction between different markets but leaves the study of economy-wide aggregates to macroeconomics.

Detailed explanation-4: -Microeconomics studies the study of economics from the view point of an individual unit. Price theory studies how prices of goods are determined in the commodity market and how process of factors of production are determined in the factor market. Thus micro economics is also known as price theory.

Detailed explanation-5: -Microeconomics and macroeconomics are not independent approaches to economic analysis but they are complementary to each other.