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Microeconomics. Economic theory is conventionally divided into two parts: (a) microeconomics and (b) macroeconomics. As the names suggest, the difference lies in the level of aggregation at which economic phenomena are studied. Microeconomics is concerned with the study of the individual decision units’ consumers and firms, the way in which their decisions interrelate to determine relative prices of goods and factors of production, and the quantities of these which will be bought and sold. Its ultimate aim is to understand the mechanism by which the total amount of resources possessed by society is allocated among alternative uses. The central concept in microeconomics is the market. c$> free market economy; price system; price theory.

Mill, John Stuart (1806-1873). John Stuart Mill’s childhood was subjected to a regime of severe educational discipline by his father, James

Mill, John Stuart (1806-1873)

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