![]() The points given below explains the difference between micro and macro economics in detail: Key Differences between Micro and Macro Economics It helps in resolving the various problems of the economy, thereby enabling it to function efficiently. It includes regional, national and international economies and covers the major areas of the economy like unemployment, poverty, general price level, GDP (Gross Domestic Product), imports and exports, economic growth, globalisation, monetary/ fiscal policy, etc. ![]() Macroeconomics is the branch of economics that concentrates on the behaviour and performance of aggregate variables and those issues which affect the whole economy. Here, the demand plays a key role in determining the quantity and the price of a product along with the price and quantity of related goods (complementary goods) and substitute products, so as to make a judicious decision regarding the allocation of scarce resources, concerning their alternative uses. Microeconomics is the branch of economics that concentrates on the behaviour and performance of the individual units, i.e. It has been analyzed that ‘Fallacy of Composition’ involves, which sometimes doesn’t proves true because it is possible that what is true for aggregate may not be true for individuals too. In microeconomics it is assumed that there is a full employment in the society which is not at all possible. It is based on unrealistic assumptions, i.e. Maintains stability in the general price level and resolves the major problems of the economy like inflation, deflation, reflation, unemployment and poverty as a whole. Helpful in determining the prices of a product along with the prices of factors of production (land, labor, capital, entrepreneur etc.) within the economy. The branch of economics that studies the behavior of the whole economy, (both national and international) is known as Macroeconomics.Īpplied to operational or internal issuesĬovers various issues like demand, supply, product pricing, factor pricing, production, consumption, economic welfare, etc.Ĭovers various issues like, national income, general price level, distribution, employment, money etc. The branch of economics that studies the behavior of an individual consumer, firm, family is known as Microeconomics. Contents: Micro Economics Vs Macro Economics Micro Economics and Macro Economics. Here, in the given article we’ve broken down the concept and all the important differences between micro economics and macro economics, in tabular form, have a look. Economics has been divided into two broad parts i.e. ‘Economics’ is defined as the study of how the humans work together to convert limited resources into goods and services to satisfy their wants (unlimited) and how they distribute the same among themselves. On the other hand, macro economics is the study of the economy as a whole i.e., not a single unit but the combination of all, firms, households, nation, etc. The micro economics is the study of an economic behavior of a particular individual, firm, or household, i.e.
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