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What is difference between micro and macro economics?

Solution:
 

Characteristics		 Microeconomics Macroeconomics
Definition Microeconomics can be described as the branch of Economics that is related to the study of individual, household and firm’s behaviour in decision making and allocation of the resources. Macroeconomics can be described as the branch of Economics that deals with the study of the behaviour and performance of the economy in total.
Area of Study It studies the particular market segment of the economy. It studies the whole economy, that covers several market segments.
    Deals with It deals with various issues like demand, supply, factor pricing, product pricing, economic welfare, production, consumption, and more. It deals with various issues like national income, distribution, employment, general price level, money, and more.
Buisness application
It is applied to internal issues.

 
It is applied to external issues.

 
Major tools Demand and supply Aggregate and aggregate supply.

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S.No

Microeconomics

Macroeconomics

1.

Microeconomics studies individual economic units

Macroeconomics studies a nation’s economy, as well as its various aggregates.

2.

Microeconomics primarily deals with individual income, output, price of goods, etc.

Macroeconomics is the study of aggregates such as national output, income, as well as general price levels.

3.

Microeconomics focuses on overcoming issues concerning the allocation of resources and price discrimination.

Macroeconomics focuses on upholding issues like employment and national household income.

4.

Microeconomics accounts for factors like the demand and supply of a particular commodity.

Macroeconomics account for the aggregate demand and supply of a nation’s economy.

5.

Microeconomics offers a picture of the goods and services that are required for an efficient economy. It also shows the goods and services that might grow in demand in the future.

Macroeconomics helps ensure optimum utilization of the resources available to a country.

6. 

Microeconomics helps to point out how equilibrium can be achieved at a small scale.

Macroeconomics help determine the equilibrium levels of employment and income of the nation.

7. 

Microeconomics also focuses on issues arising due to price variation and income levels. 

The primary component of macroeconomic problems is income.
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