Explain any four features of micro economics.

Answer: Micro economics studies the behaviour of individual economic units. Its features are:

1. Study of individual units: it analyses individual consumers, firms, industries and households.
2. Price theory: it explains how prices of products and factors are determined by demand and supply, so it is also called price theory.
3. Partial equilibrium analysis: it studies the equilibrium of an individual unit independently, assuming other things constant.
4. Based on certain assumptions: e.g. full employment, perfect competition, laissez-faire, ceteris paribus.
5. Slicing method: it divides the economy into small parts and studies each part separately.
6. Analysis of market structure: it studies different forms of market such as perfect competition, monopoly, oligopoly and monopolistic competition.
7. Limited scope: it does not deal with national problems such as inflation, unemployment and national income.