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It is a part of Alfred Marshall’s Definition of Economics. The complete definition is given as: “Economics is the study of Mankind in the ordinary business of life. It examines that part of individual and social action which is mostly connected with the attainment and with the use of the material requisites of well-being”. Difference Between Wealth And Welfare In Economics The basic purpose / aim of Economics is the welfare of human beings and not concentrate only on the wealth or on rich people but it deals with common man living in the society. Wealth ca n not be given preference over welfare. Yes, we attain wealth but we can not given primary importance rather than it is utilized for the welfare of the common person and the whole society. It attains only for the fulfillment of Needs and Wants. Therefore, we study wealth only for the welfare of a common man. So, Economics is a Social Science which examines that part of human beings which is h...

The word “Micro” means a small part or a millionth part. So, Micro Economics is the study of the economy at a small level i.e., we are interested in the study of an individual unit, particular firm, industry like Cotton, textile, rice, etc. an individual customer behavior in buying and selling goods and services (its Consumption and Spending’s patterns). We study the income of particular individuals, firms, industries and not Natio nal Income. We analyze the price level of a particular products or a factor of production and not the General Price Level prevailing in the whole economy. The demand and supply of a particular product is analyzed and not the aggregate demand and aggregate supply. Significance / Importance of Micro Economics   1. Micro Economics has great importance for the study of economy both at theoretical and practical level. For Example, at theoretical level, we study the working and functions of an economy at an individual level. Ho...