Micro Economics Theory and Practice

In recent years economists have divided economic analysis into two parts: Micro-economics and Macro-economics. These terms were first coined and used by Ragnan Friseh and have now been adopted by the economists all the world over. The term micro is derived from the Greek word micros, meaning small and the term macro is derived from the Greek Word macros, meaning large. Thus micro-economics deals with the analysis of small individuals of the economy such as individual consumers, firms, industries, markets etc. On the other hand, macro-economic concerns itself with the analysis of the economy as a whole and its large aggregates such as total consumption, total investment, total output, employment etc.