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Pavitar Parkash Singh, Lovely Professional University Unit-1: Introduction to Microeconomics

Notes
Unit-1: Introduction to Microeconomics

CONTENTS

Objectives
Introduction

1.1 Microeconomics

1.2 Macroeconomics
1.3 Distinction between Microeconomics and Macroeconomics

1.4 Problems of Interrelation and Integration of the Two Approaches
1.5 Summary

1.6 Keywords
1.7 Review Questions

1.8 Further Readings

Objectives

After studying this unit, students will be able to:
• Know about Microeconomics.

• Study Macroeconomics.
• Explain the importance of Microeconomics.
• Discuss the problems related to Micro and Macroeconomics.

Introduction

Microeconomics and Macroeconomics are two ways of analyzing the Economic problems. First
is related to study of economic individuality while the second is related to study of the whole
economical conditions. Ranger Frisch was the first person who used the Micro and Macro words in
Economics in 1933.

Example:We study the co-relation of individual families, individual firms and individual
industries in Microeconomics.

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