Is public economy micro or macro

Microeconomics

Branch of - ~ Economics, which, in contrast to macroeconomics, deals with the behavior and decisions of and in individual economies (companies, households). An important foundation of microeconomics is methodological individualism, according to which all results of economic action (should) have their justification in the preferences and behavior of the individual economic subjects, since the individual decision-maker knows his preferences best and is able to articulate them. The dominant behavioral hypothesis is that of the (rational) utility maximizer. Important sub-areas of microeconomics are the theory of the company, the household, welfare theory or the theory of institutions.

In contrast to • macroeconomics, microeconomics deals with individual economic subjects (households, companies, public authorities), their income, consumption, etc., as well as their economic behavior. The main areas are household, production and price theory.

In socialist economics: Theories of economics, in which explanations of connections start directly with the behavior of the individual economic subjects.

Microeconomics is based on the assumption that economic agents behave rationally, i.e., under the given legal, temporal and other factual restrictions, use their scarce resources in such a way that the goals they have chosen are realized as well as possible. The focus is on market processes such as pricing, competition or division of labor within companies, etc.> Macroeconomics,> Economics, politics, economics

In economic sociology: Term for theories of the economic behavior of the individual economic subject (household, company) as supplier and customer in various markets. The behavior is analyzed in particular in its dependence on the respective market forms. Special forms of microeconomics are production, price and consumption theories. In contrast, macroeconomics deals with the aggregates of the variables resulting from individual behavior. Macroeconomics include the economic cycle, business cycle and growth.

Previous technical term: microeconometrics | Next technical term: microeconomics



Report this article to the editors as incorrect & mark it for editing