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What is the difference b/w Micro economics and Macro economics ?

 it was given in the study zone of meritnation itself  :) 

Points of Difference

Microeconomics

Macroeconomics

1 Study matters

It studies about individual economic units like households, firms, consumers, etc.

It studies about an economy as a whole.

2 Deals with

It deals with how consumers or producers make their decisions depending on their given budget and other variables.

It deals with how different economic sectors such as households, industries, government and foreign sector make their decisions.

3 Method

It uses the method of partial equilibrium, i.e. equilibrium in one market.

It uses the method of general equilibrium, i.e. equilibrium in all markets of an economy as a whole.

4 Variables

The major microeconomic variables are price, individual consumer’s demand, wages, rent, profit, revenues, etc.

The major macroeconomic variables are aggregate price, aggregate demand, aggregate supply, inflation, unemployment, etc.

5 Theories

Various theories studied are:

1.Theory of Consumer’s Behaviour and Demand

2. Theory of Producer’s Behaviour and Supply

3. Theory of Price Determination under Different Market Conditions

4. Theory of Factor Pricing

5. Theory of Welfare Economics

Various theories studied are:

1.Theory of National Income

2. Theory of Money

3. Theory of General Price Level

4. Theory of Employment

5. Theory of International Trade

 

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View Full Answer
  1. microeconomics is that branch of economics which deals with the individual economic units where as macro economics refers to that branch of economics which deals with the economic problem as a whole .
     
  2. subject matter :- in micro econmomics it is price determination of a good and in macro it is national income and employment determination.
  3. central issue:- in micro it is the allocation of resources and in macro it is the determination of full employment
  4. micro economics analysis is known as partial equilibrium analysis and macro analysis is known as general equilibrium analysis
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DIFFERENCE

MACROECONOMICS

MICRO ECONOMICS

Definition

Macro economics study the economic aggregates related to the whole economy like national Income, employment, inflation etc.

Micro Economics is the study of individual units and small group of individuals, like consumers, allocation of resources, change of prices etc.

Scope

It deals with the economy as a whole.It deals with income and output determination at full employment level in the economy. 

It deals with the single economic unit.It deals with product pricing, factor pricing and welfare economics.

Basis

 

Theory of Income and employment is the central theme of Macro Economics ,as it covers a broader aspect of an economy.

Theory of Pricing is the key of microeconomics. The change in pricing pattern due to various factors is the main concern.

Examples

Total output of economy, distribution of output, level of employment, economic development etc.

Change in prices, laws of demand & supply, allocation of resources, factor pricing etc

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