State any four features of Microeconomics.

Question

Accepted Answer

Microeconomics displays several distinct features, all of which follow from studying the economy at the level of individual units. (1) It studies INDIVIDUAL economic units — a single consumer, firm, industry, or commodity — never the economy as a whole. (2) It is also called PRICE THEORY, because price determination in an individual market is its central concern. (3) It uses PARTIAL EQUILIBRIUM analysis, studying the equilibrium of one market at a time while assuming all other markets and variables remain unchanged ('ceteris paribus'). (4) It employs the SLICING METHOD, 'cutting' the economy into small individual units and studying each one separately. Additional features include its coverage of demand, supply, consumer behaviour, production, cost and market forms, and its concern with the efficient ALLOCATION of scarce resources among competing uses.

✓Final answer

Any four features: studies individual units; called Price Theory; uses partial equilibrium analysis; uses the Slicing Method; assumes 'other things being equal'; concerned with efficient resource allocation.

Same / Similar Concept — real previous-year questions on the same or a closely similar concept, not this exact question.

CBSE 2026Set ANNUAL1 mark
$Q. Give an economic term: A branch of economics which does microscopic study of the economy.$
›Reveal solutionSolution

A branch of economics doing a microscopic study of the economy = Microeconomics.

Microeconomics studies the economic behaviour of small individual units of the economy — an individual consumer, a firm, a single industry or the price of one commodity. The word 'micro' means small, and this branch takes a microscopic (piecemeal) view, examining parts rather than the whole. It deals with product pricing, factor pricing and the theory of demand and supply of individual goods.

✓Final answer
$Microeconomics .$
CBSE 2025Set ANNUAL1 markMCQ
$Q. The terms of Micro Economics and Macro Economics were coined by Norwegian Economist ______.$
(a) Adam Smith
(b) J.M. Keynes
(c) J.B. Say
(d) Ragnar Frisch
›Reveal solutionSolution

The correct answer is Ragnar Frisch.

The terms 'microeconomics' and 'macroeconomics' were first used by the Norwegian economist Ragnar Frisch in 1933. 'Micro' comes from the Greek mikros (small) and 'macro' from makros (large): microeconomics studies individual units (a consumer, a firm, a single market), while macroeconomics studies the economy as a whole (national income, general price level, employment). Adam Smith, J.M. Keynes and J.B. Say did not coin these terms.

✓Final answer
$Ragnar Frisch — the Norwegian economist who coined the terms micro and macro economics.$
CBSE 2023Set ANNUAL1 markMCQ
$Q. Micro Economics is also called as ______.$
(a) Income theory
(b) Price theory
(c) Growth theory
(d) Employment theory
›Reveal solutionSolution
Microeconomics is popularly known as Price theory, because its central subject matter is how the price of an individual commodity or factor of production is fixed by the interaction of demand and supply.

Microeconomics (from the Greek mikros = small) examines the economic behaviour of individual decision-making units — a single consumer, a single firm, a single industry or a single market. Its main questions are: What determines the price of a good? How is a consumer's demand decided? How does a firm fix its output and price? How are wages, rent, interest and profit (factor prices) determined?

Because every one of these questions ultimately turns on price determination through the forces of demand and supply, microeconomics is described as Price theory.

Income theory and Employment theory are labels for Macroeconomics, which studies aggregates like national income and total employment.

Growth theory also belongs to the macro / development field.

✓Final answer
$Micro Economics is also called Price theory .$

> [!ANSWER]
> Any four features: studies individual units; called Price Theory; uses partial equilibrium analysis; uses the Slicing Method; assumes 'other things being equal'; concerned with efficient resource allocation.

Q.State any four features of Microeconomics.

Concept understanding — Microeconomics — Meaning and Features

Q.State any four features of Microeconomics.

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