Introduction to Micro Economics.

 1.Introduction.

A)There are two types of economy.

                 a)     Micro

                 b)     Macro

B)Micro Economics is derived from a greek work mikros and Macro is derived from Makros.

C)Micro Economics is behaviour of individuals i.e  individual Producer.

D)Macro Economics is behaviour of Aggregates i.e total national income.

2.Historical Review.

A) Adam smith-“Father of economics. He is founder of Micro economics. He wrote a book wealth of nation in 1776.

B) Micro Economics can be seen in writing of david ricardo & J. S. Mills.

C) Micro Economics was developed prof, Alfred Marshall {Architect of Micro Eco}. He wrote a book of PRINCIPLES OF ECONOMICIS IN 1890.

D) People participated in development are Prof. Samuelson, Mrs. Joan Robinson, Chamberlin.

 3. Meaning & Definition of Micro Economics.

Micro means small part of a things.[e.g Study of a tree not a forest.]

      

      A)    Kenneth Boulding:- It is a study of Firm, Particular Household, Individual Price, Wages, Income, Individual Industry, Commodities.

     

      B)    Mourice Dobb:- It is microscopic study of economy & individual unit examined separately.