microeconomics

/maɪkroʊɛkəˈnɑmɪks/

/maɪkrəʊɛkəˈnɒmɪks/

Microeconomics is the study of of how people use money and other resources on a small-scale, individual level. If you're interested in why people spend, you might want to study microeconomics.

The field of economics is often divided into two branches, microeconomics and macroeconomics. While the second focuses on the big-picture effects of a national economy, microeconomics is concentrated on the way people and businesses make financial decisions, including things like what individual consumers choose to buy at the grocery store. The word hints at this small-scale focus with its prefix micro-, "small."

Definitions of microeconomics

1. noun

   the study of how consumers, households, or individual firms acquire and use resources
   type of:

   economic science, economics, political economy

   the branch of social science that deals with the production and distribution and consumption of goods and services and their management