What is microeconomics?What is Microeconomics?

When the question is asked what is microeconomics, this answer might help.

Microeconomics comes from the greek word micro meaning small.

Economics is about making economic decisions, so as to make the best use of scarce resources.

So microeconomics focusses on individual consumers and businesses rather than the whole economy. These individuals and businesses must make the best use of scarce resources. This is the economic concept of scarcity.

Interaction between consumers and businesses takes place in ‘markets‘.

Because of this, learning about markets is very important in microeconomics.

Now learn more by accessing these free resources and low cost business tutorials.



What is a Market?

What is a Market? A market is a place (physical or virtual) where buyers meet sellers to purchase a good or service. An example of a market is a sharemarket where shareholders buy and sell company shares. Another example is a farmer’s market, where farmers, growers and small producers of cheese, …

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What are Resources in Economics

What are Resources in Economics? Resources in economics are the inputs into the production process. Accountants analyse and report costs and benefits to the business that are measured in number form or quantified. Economists consider quantifiable and unquantifiable costs and benefits. For example, to grow coffee, a producer needs a warm …

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What is Demand and Supply?

What is Demand and Supply? Demand and supply is a fundamental concept in economics. In a market, the forces of demand and supply interact to create the ‘price mechanism‘. This is the way a market economy works. Demand comes from the buying (consumer) side of a market, whilst supply is …

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